How can external consultants support a maturity transformation effort?

Oct 7, 2019 ... To hedge the deposit franchise, banks must therefore hold long-term fixed-rate assets; i.e., they must engage in maturity transformation. Nov 15, 2011 ... Banks choose the amount of debt and its maturity taking into account investors' preference for short maturities (which better accommodate their. ... maturity transformation. Develop an understanding of regulatory themes (such as risk management, capital adequacy, recovery and resolution, deposit ... We show that maturity transformation does not expose banks to interest rate risk— it hedges it. The reason is the deposit franchise, which allows banks to ... Our results have interesting implications for the effects of monetary policy on bank maturity transformation and credit availability. JEL Codes: E44, E51 ... Nov 22, 2022 ... Why the business of banking is a risky venture ... Prashanth Perumal J. ... Maturity transformation refers to a role played by banks in which they ... We quantify the gains from regulating banks' maturity transformation in an infinite horizon model of banks which finance long-term assets with non-tradable debt ... Aug 26, 2024 ... Through maturity transformation, banks accept short-term deposits from savers and utilize those funds to provide long-term loans to borrowers. Maturity transformation allows the representative bank to increase its value by a net amount equivalent to 78.5 % of the unlevered value of its assets, μ / ρ H ... So the maturity transformation related to interest rate risk measures the time elapse until the next readjustment of interest rates, which will be at most ...