The loans granted by a bank should correspond – in terms of volume, – in terms of maturity and also – which is very often still criminally disregarded today! – should correspond to their liabilities (deposits) in the agreed currency in order to ensure the solvency of the institution at all times. – See balance sheet rule, golden, settlement risk, maturity breakdown, maturity matching, Herstatt risk, matching, role mixing, banking, rollover risk, debt management, currency risk.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/