1.(asset–liability gap) A measure of interest-rate risk used in banking. It comprises the difference between rate-sensitive assets (i.e. loans) and rate-sensitive liabilities (i.e. deposits) within a particular range of repricing time periods. If short-term rate-sensitive assets are greater than short-term liabilities, the gap will lead to a situation in which an interest-rate fall will lower the profitability and value of a bank. See also Mismatch.
2. Any disparity between goals, expectations, or requirements on the one hand and the actual situation on the other, as between the predicted and actual performance of a business or business unit or between consumer expectations and the quality of goods or services supplied. See Servqual; Strategic Gap Analysis.