Gap Analysis Overview

The Gap Analysis reports provide static Gap analysis on your current balance sheet.  Static Gap Management Theory is based on the simple concept that repricing volumes will always reprice.

The theory is relatively simple - being positively gapped (more assets than liabilities repricing) means having more income generating volume than expense generating volume. If rates rise, income rises. If rates fall, income falls. The opposite is true for a negatively gapped institution. Thus, through this simple method of A/L management, the bank may be able to judge its earnings exposure to interest rate movements.

The system provides detailed runoffs for each application file by maturity date and by rate review date.  Other standard reports include the General Ledger Average Balance/Yield report, and Maturity and Rate Gap reports.