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What are the 'Gaps' referred to in ALM?

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/08/26
RAJU MOHAN
by RAJU MOHAN , Risk Manager , Canara Bank

Assets and Liabilities are put into different time buckets based on several factors. Gaps are the difference between the total of assets and liabilities in different time buckets. It is required for various MIS purpose especially liquidity management.

 

In the context of Indian Banks , the mandatory requirement for the Gap management in the first four time buckets i,e (1 day,2-7 days,8-14 days,15-28 days ) are5%,10%,15%,20% respectively ( maximum gap )

Deleted user
by Deleted user

The variance between the bank assets & liabilities tenors and deposits' volume

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