# Term transformation risk

- Canonical URL: https://www.gerhardmerk.de/term-transformation-risk
- Post ID: 590128
- Modified: 2023-07-25T21:11:25+00:00
- Language: en

## Definition

Risks that arise when banks finance exposures for longer periods with short-term deposits. This occurred in many cases in the course of the financial crisis that followed the subprime crisis. When the market for short-term funding collapsed, the affected institutions proved illiquid from one day to the next. - See banking rule, golden rule, Lehman bankruptcy, funding risk. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! 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/

## Machine-readable

- Generator: Merk Knowledge 1.1.1