Management gap

In order to assess the exposure of businesses to interest rate risk (the sensitivity to fluctuations in interest rates) are usually analyzed gaps term structure of interest bearing assets and liabilities (gap analysis). To determine the rate gepu all assets and liabilities of the bank are divided into groups: assets and liabilities, sensitive to changes in interest rates, assets and liabilities sensitive to interest rate changes. It is obvious that such a separation can be achieved only within a certain time interval specified, because in the long term, all assets and liabilities will be overestimated or returned to the bank, and, consequently, they should recognize sensitive to changes in interest rates.'s assets and liabilities sensitive to interest rate changes for a fixed period of time, if at least one of the following: date of the revision of a floating rate falls within the fixed time interval, mature in this range ; term interim or partial payments to occur in this interval.'s assets (liabilities) that are sensitive to interest rate changes include: deposits (deposits) on which the contract expires; contributions with floating rate loans, which will be refunded in the period under review; Loans with floating interest rates, amortization loans, the term of the contract which is not completed within the given period, securities (including promissory notes, bonds) that are repaid over a given period, securities that pay a coupon rate of over this period, other assets and liabilities, including financial instruments that are out of balance. To not sensitive assets and liabilities include those revenues and costs are within a fixed time interval independent of changes in interest rates on the market. After the group of interest assets and liabilities are calculated gap (the gap imbalance) according to the period which is equal to the difference in interest total volume of assets subject to revaluation in the period and the total volume percentage of liabilities subject to revaluation in the period. Category: Management Operations Commercial Bank