negative gap
Definition
In interest rate sensitivity analysis, situation where the interest-incurring liabilities exceed interest generating assets. A negative gap in declining interest rate environment will improve net interest income because falling interest rates will re-price (at lower rates) a greater volume of liabilities than assets.
Popular 'Accounting & Auditing' Terms
negative gap in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/negative-gap.html
