Banks' Maturity Transformation : Risk, Reward, and Policy /

The aim of this paper is twofold: first, to study the determinants of banks' net interest margin with a particular focus on the role of maturity transformation, using a new measure of maturity mismatch; second, to analyse the implications for banks from the relaxation of a binding prudential li...

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Détails bibliographiques
Auteur principal: Bologna, Pierluigi
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2018.
Collection:IMF Working Papers; Working Paper ; No. 2018/045
Accès en ligne:Full text available on IMF
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100 1 |a Bologna, Pierluigi. 
245 1 0 |a Banks' Maturity Transformation :   |b Risk, Reward, and Policy /  |c Pierluigi Bologna. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2018. 
300 |a 1 online resource (32 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a The aim of this paper is twofold: first, to study the determinants of banks' net interest margin with a particular focus on the role of maturity transformation, using a new measure of maturity mismatch; second, to analyse the implications for banks from the relaxation of a binding prudential limit on maturity mismatch, in place in Italy until mid-2000s. The results show that maturity transformation is a relevant driver of the net interest margin, as higher maturity transformation is typically associated with higher net interest margin. However, 'excessive' maturity transformation- even without leading to systemic vulnerabilities- increases banks' interest rate risk exposure and lowers their net interest margin. 
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