What are the long-term implications of maturity transformation for an organization?

Mar 22, 2017 ... We show that maturity transformation does not expose banks to interest rate risk---it hedges it. The reason is the deposit franchise, which ... May 27, 2015 ... The financial system undertakes maturity transformation – that is, when it transforms illiquid longer-term assets into liquid assets. ... maturity transformation. Banks price interest risk according to their individual exposure separately in loan and deposit intermediation fees, but reduce ... Feb 15, 2021 ... Our results show that by actively matching the sensitivities of their income and expense, banks are largely insulated from this effect. Banks' ... (with maturity less than one year, excluding overnight debt) increased ... The more worrisome problem is the amount of maturity transformation they're ... funding for liquidity and maturity transformation”. • Yet no direct evidence: liquidity regulation causes the transformation of the use of wholesale funding. Mar 16, 2011 ... banks, into the non-bank intermediation channel, with MMMFs performing large scale maturity transformation, with hedge funds employing leverage,. Transformation Tracks operate as the basis for the levels of the maturity curve. They are a collection of student-centric strategies that leverage Starfish ... Nov 30, 2012 ... during the recent crisis was the excessive maturity transformation undertaken by financial firms. Put simply, these firms were relying too ... May 31, 2023 ... Key Takeaways · Maturity transformation is a key process in the banking system, allowing banks to balance the liquidity needs of customers with ...