Maturity transformation
What Maturity transformation means in Economics A-Level, as defined for AQA.
Definitions of Maturity transformation
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Reference: AQA
The process of borrowing short term through deposits and lending long term through mortgages and business loans.
Turning short-term deposits into long-term lending.
Topics that use Maturity transformation
- Commercial banks and investment banks (AQA A-Level)
- The regulation of the financial system (AQA A-Level)
Related terms
- Systemic risk
- Bank run
- Capital ratio
- Commercial banks
- Consumer protection
- Credit creation
- Financial intermediation
- Financial markets
Using Maturity transformation in the exam
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