How does maturity transformation pose risks for commercial banks? Does it make any difference whether the banks

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How does maturity transformation pose risks for commercial banks? Does it make any difference whether the bank’s assets have longer or shorter maturities than its liabilities? Is one more risky than the other?

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Financial Markets Banking And Monetary Policy

ISBN: 9781118872239

1st Edition

Authors: Thomas D. Simpson

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Question Posted: Feb 02, 2024 09:48 AM

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How does maturity transformation pose risks for commercial banks? Does it make any difference whether the banks

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Maturity transformation is when banks borrow shortterm through deposits or other methods and lend longterm for mortgages business loans etc This proce...View the full answer

Financial Markets Banking And Monetary Policy

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