International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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GAP ANALYSIS : A TOOL FOR ASSET-LIABILITY MANAGEMENT

    1 Author(s):  KAMALPREET

Vol -  2, Issue- 3 ,         Page(s) : 206 - 211  (2011 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

Asset-liability management( ALM) is one of the most important contemporary issues in banking and finance sector. In order to effectively manage assets and liabilities, their mismatch is examined by way of GAP analysis. A positive gap indicates bank has more assets where negative gap indicates bank has more liabilities. A timeframe of 5 years (2005-10) have been selected for this study. GAP analysis of assets liabilities data was conducted to study the impact of the assets liability gap on net interest income of the bank. After the analysis it can be said that private banks are managing their assets and liabilities very well.

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