Akademik

If the average maturity of a bank's liabilities ( liability) is shorter than that of its assets, it is said to be running an unmatched book. The term is commonly used with the Euromarket. Also refers to entering into OTC derivatives contracts and not hedging by making trade in the opposite direction to another financial intermediary. In this case, the firm with an unmatched book usually hedges its net market risk with futures and options. Related expressions: open book and short book. Bloomberg Financial Dictionary

   One in which the maturities of assets and liabilities do not correspond. More specifically, when the average maturity of the liabilities is less than that of the assets. For a bank it can mean it has made long-term loans but has only short-term deposits, which may be withdrawn before the loan assets are realized. Sometimes known as lending long and borrowing short.

   ► See also Book.