Mismatch

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Dictionary Says

Definition of 'Mismatch'

In general, this means to match incorrectly or unsuitably. In the banking world, it refers to a situation pertaining to asset and liability management. A mismatch occurs when assets that earn interest do not balance with liabilities upon which interest must be paid. For example, an asset that is funded by a liability with a different maturity creates a mismatch.
Investopedia Says

Investopedia explains 'Mismatch'

Also known as mismatched books, this situation is common in banking. For example, a bank may borrow for the short term and make long-term loans. Therefore they will fund 30 year mortgages with short term deposits, anticipating that the deposits will be rolled over.

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'Mismatch'

  • Riding The Market Bubble: Don't Try This At Home

    http://www.investopedia.com/articles/economics/09/investment-bubble.asp
    ... 1. Asset/Liability Mismatch An asset/liability mismatch occurs when there is a wide
    differential margin between the duration of a financial institution's loans ...

  • Credit Crisis: Historical Crises | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis2.asp
    ... of many financial crises. These factors include an asset/liability mismatch
    and excessive leverage and risk. Frequently more than ...

  • Analyzing A Bank's Financial Statements

    http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
    ... rates faster than loans. The result is a balance sheet mismatch between assets
    (loans) and liabilities (deposits). An upward sloping ...

  • Use Duration And Convexity To Measure Bond Risk

    http://www.investopedia.com/articles/bonds/08/duration-convexity.asp
    ... Duration for Gap Management Many banks have a natural mismatch between asset
    and liability maturities. Bank liabilities are primarily ...

  • Profit From Agriculture

    http://stocks.investopedia.com/stock-analysis/2011/Profit-From-Agriculture-BG-CF-ADM-AGU0830.aspx
    ... China , Of Course With 22% of the world's population, China only commands 8% of
    the world's arable land and 7% of its water. That mismatch is a big, big deal. ...

  • 9 Tricks Of The Successful Forex Trader Slideshow | Investopedia

    http://www.investopedia.com/slide-show/successful-forex-tricks
    ... to trade successfully. A personality mismatch will lead to stress and certain
    losses. 2. Choose The Right Broker. It is important ...

  • Credit Crisis: Conclusion | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis9.asp
    ... of many financial crises. These factors include an asset/liability mismatch
    and excessive leverage and risk. Frequently more than ...

  • Managing Your Personal Brand - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0909/Managing-Your-Personal-Brand.aspx
    ... A middle-class suburban professional or an entry-level urban dweller may both
    experience a mismatch between who they currently are and who they want to be. ...

  • Profit From Agriculture

    http://stocks.investopedia.com/stock-analysis/2009/Profit-From-Agriculture-BG-CF-ADM-AGU1022.aspx
    ... China , Of Course With 22% of the world's population, China only commands 8% of
    the world's arable land and 7% of its water. That mismatch is a big, big deal. ...

  • 9 Tricks Of The Successful Forex Trader Slideshow | Investopedia

    http://www.investopedia.com/slide-show/successful-forex-tricks/define-goals.aspx
    ... to trade successfully. A personality mismatch will lead to stress and certain
    losses. 2. Choose The Right Broker. It is important ...

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