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Asset liability mismatch occurs when the cash flows or maturities of an entity's assets do not align with those of its liabilities. This can lead to liquidity risks, as the entity may struggle to meet its obligations when they come due. For example, if a bank has long-term loans as assets but short-term deposits as liabilities, it could face difficulties if depositors withdraw funds unexpectedly. Proper management of this mismatch is crucial for maintaining financial stability and ensuring solvency.
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What is net liability?
Asset - Liability = Net Asset / Liability * Net Asset - When Asset is more than Liability * Net Liability - When Liability is more than Asset
Are you aware that Motilal Oswal infrastructure reports that infrastructure project funding is long term in nature creating asset-liability mismatch for commercial banks?
Yes
Is a trade debtors asset or liability?
yes It is an Asset, not a Liability.
Is asset or liability?
asset
Is rent income a asset liability or owners equity?
asset liability
Is debtor an asset or liability?
It is an asset
Is Cash an asset or liability?
Asset.
Is a premises an asset or liability?
asset
Is premises a asset or liability?
asset
Is equipment an asset or liability?
Asset
Is equipment liability or asset?
Asset
Is land an asset or liability?
Asset
