Matching maturities

In general, the matching of the timing of deposits and disbursements in an economic entity. – In the case of a bank, the basic matching of the maturities of loans granted with the deposits of customers. The loans should correspond to their liabilities (deposits) – in terms of size, – in terms of maturity and also, which is often still criminally disregarded today, – in terms of the agreed currency in order to ensure the solvency of the institution at all times. – See banking rule, golden, settlement risk, maturity breakdown, funding ratio, medium-term, maturity transformation, Herstatt risk, matching, rollover risk.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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