Negative Gap

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Dictionary Says

Definition of 'Negative Gap'

A situation where a bank's interest-sensitive liabilities exceed its interest-sensitive assets. A negative gap is not necessarily a bad thing, because if interest rates decline, the bank's liabilities would get repriced at lower interest rates and income would increase. However, if interest rates increase, liabilities would get repriced at higher rates and income would decrease.

The opposite of a negative gap is a positive gap, where a bank's interest-sensitive assets exceed its interest-sensitive liabilities.
Investopedia Says

Investopedia explains 'Negative Gap'

Gap analysis offers a simplified way to determine a bank's interest-rate risk as it relates to repricing – the change in interest rate when an interest-sensitive investment matures. The size of a bank's gap indicates how much of an impact interest-rate changes will have on a bank's net interest income.
Search results for

'Negative Gap'

  • Little Reason To Try On Gap

    http://stocks.investopedia.com/stock-analysis/2011/Little-Reason-To-Try-On-Gap-GPS-LTD-PSUN-ANN-LULU1124.aspx
    ... Gap comps fell 6%, 39% stemmed from the Old Navy concept, which reported a sales
    decline of 4.9% and negative comps of 4%. Another category that contains ...

  • Top 10 Shorted Stocks

    http://stocks.investopedia.com/stock-analysis/2010/Top-10-Shorted-Stocks-GAP-ATPG-XOMAD-BKS-HOV-ADS-MGM0827.aspx
    ... According to GAP's quarterly report for the period ended June 19, the company had
    negative free cash flow and a significant pile of debt - a bad combination to ...

  • Glenn Murphy: Here's How You Fix The Gap

    http://stocks.investopedia.com/stock-analysis/2011/Glenn-Murphy-Heres-How-You-Fix-The-Gap-GPSKSSJCPVFCLIZ0624.aspx
    ... However, since the end of 2003, the total return on Gap stock is negative 14.4%
    compared to a gain of 15.8% for the S&P 500 and the index's return doesn't ...

  • Gap: Value Or Value Trap?

    http://stocks.investopedia.com/stock-analysis/2009/Gap-Value-Or-Value-Trap-GPS-ARO-BKE-TRLG-SHLD0826.aspx
    ... $3.25 billion as growth in online sales was more than offset by a lower store base
    and negative same store sales. Net square footage fell 0.3% as Gap opened 12 ...

  • The Year's 3 Best Stocks Have Negative Earnings

    http://stocks.investopedia.com/stock-analysis/2010/The-Years-3-Best-Stocks-Have-Negative-Earnings-BEE-PCBC-RAS--SPY-XLF0512.aspx
    ... Funding Gap Pacific Capital Bancorp (NASDAQ:PCBC) is a California based retail banking
    operation that, like Strategic Hotels, offers no dividend and negative ...

  • Gap's Worrisome Cash Flow Trends

    http://stocks.investopedia.com/stock-analysis/2010/Gaps-Worrisome-Cash-Flow-Trends-GPS-JCP-RL-WMT-LTD1123.aspx
    ... Higher income taxes turned net income growth negative, with a fall of 1.3% to $303
    million, or 48 cents per diluted share. Outlook Gap provided a general ...

  • Playing The Gap

    http://www.investopedia.com/articles/trading/05/playinggaps.asp
    ... If you see high-volume resistance preventing a gap from being filled, then double ...
    Be sure to wait for declining and negative volume before taking a position ...

  • Companies Making Money With Declining Sales

    http://stocks.investopedia.com/stock-analysis/2009/Companies-Making-Money-With-Declining-Sales-GPS-SBUX-RSH-BBY-LXK0813.aspx
    ... Gap is a favourite punching bag of stock analysts, due to its evident lack of vision.
    Same-store sales have been negative for 30 out of the last 38 quarters. ...

  • The Best And Worst Stocks For The Year

    http://stocks.investopedia.com/stock-analysis/2010/The-Best-And-Worst-Stocks-For-The-Year-WNC-IDT-CPE-IYF-GAP-MDVN-AFFY-SPY-QQQQ0802.aspx
    ... sales. GAP operates grocery stores under a variety of brand names. Two ... 74%.
    Neither pays a dividend; both have negative earnings. Both ...

  • Analyzing Chart Patterns: Gaps | Investopedia

    http://www.investopedia.com/university/charts/charts8.asp
    ... Exhaustion Gap This is the last gap that forms at the end of a trend and
    is a negative sign that the trend is about to reverse. ...

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