Maturity mismatch: Difference between revisions
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The risk accepted by banks when undertaking maturity transformation. | The structural risk accepted by banks when undertaking maturity transformation. | ||
Banks' liabilities generally have much shorter contractual maturities than their assets. | Banks' liabilities generally have much shorter contractual maturities than their assets. | ||
Revision as of 07:44, 14 August 2016
The structural risk accepted by banks when undertaking maturity transformation.
Banks' liabilities generally have much shorter contractual maturities than their assets.
This maturity mismatch is a source of liquidity risk.
