A technique or process for quantifying exposure to adverse consequences from changes in interest rates. A comparison of the total quantity of a financial institution's rate-sensitive assets (RSAs) and rate-sensitive liabilities (RSLs) for each of a number of different future time periods or buckets. Gap analysis is used to evaluate the potential effect of rate shocks on income over these time periods.
See gap, rate-sensitive assets and rate-sensitive liabilities. American Banker Glossary
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An analysis of systems or procedures to find differences in functionality or benefits. Chicago Mercantile Exchange Glossary
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gap analysis UK US noun [C] ECONOMICS
► a system that compares how a company works now with how it would like to work, and then calculates how the company can use time, money, etc. to achieve the success it would like: »
In the business world, gap analysis allows an organization to measure how it is now performing versus its potential.
Financial and business terms. 2012.