Maturity Mismatching - Is this a legitimate banking practice?

This book consists of a debate between two sets of co-authors. Block and Barnett maintain that maturity mismatching in banking should be illegal, and will lead to the business cycle. Bagus, Howden and Huerta de Soto take the opposite point of view. What is maturity mismatching? It is a time mismatch between assets and liabilities of a bank; between deposits and loans. There are two forms of such mismatching. First, the bank can borrow short, and lend long (bsll). That is, it can take in a time deposit of one year's duration, and lend out this money for a period of five years, based on this deposit. Second, the bank can borrow long, and lend short (blls). That is, it can take in a time deposit of a ten year's duration, and lend out this money for a period of five years, based on this deposit. Our dispute mainly concerns the former.

Product details

• Authors: Bagus Barnett II Block Howden Huerta de Soto , Barnett II Bagus
• Publisher: LAP Lambert Academic Publishing
• Languages: English
• Product format: Paperback / Softback
• Released: 24.02.2020
• EAN: 9786200531599
• ISBN: 9786200531599
• No. of pages: 160
• Dimensions: 150 mm x 220 mm x 9 mm
• Weight: 230 g
• Subject: Guides > Law, job, finance > Money, bank, stock market