Matched Book


DEFINITION of 'Matched Book'

A bank is running a matched book when the maturities of its assets and liabilities are equally distributed. Also known as "asset/liability management".

BREAKING DOWN 'Matched Book'

A risk management technique for banks that ensures they have equal valued liabilities and assets with equal maturities.

  1. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  2. Asset

    1. A resource with economic value that an individual, corporation ...
  3. Bank

    A financial institution licensed as a receiver of deposits. There ...
  4. Asset/Liability Management

    A technique companies employ in coordinating the management of ...
  5. Default Risk

    The event in which companies or individuals will be unable to ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
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