We need long term liability to reduce the maturity mismatch
But, in the absence of deep long-term fund pool, private project developers bear higher cost of credit owing to revenue-cost maturity mismatch
The covered bond issue reduces the maturity mismatch
on PKO BHs balance sheet and enhances and diversifies PKO Bank Polski Groups financing structure by providing access to long-term funding for its mortgage loan portfolio.
First, the maturity mismatch
between the mortgages and the issued notes resides in the trust (as does the risk inherent in a cross-currency swap).
Bakker and Schrijvers (2000) reported a maturity mismatch
of approximately 8.
Secondly, commercial banks often get short-term financing from abroad and sell it as long-term credit, which causes a maturity mismatch
and banks become vulnerable to unexpected volatilities.
The remaining three categories seek to assess the vulnerability of a nonbank financial company to financial distress: leverage, liquidity risk and maturity mismatch
, and existing regulatory scrutiny.
Coupon will be paid on a monthly basis at a fixed rate, while proceeds will go for cutting maturity mismatch
between the company's assets and liabilities.
Those methods include monitoring measures of leverage and maturity mismatch
at financial intermediaries, examining asset valuations, underwriting standards for loans, and eyeing credit growth for signs of a credit-induced buildup of systemic risk.
The criteria the FSOC would use to identify a troubled, systemically important "nonbank financial company" could include: 1) size, 2) lack of substitutes for the financial services and products the company provides; 3) interconnectedness with other financial firms; 4) leverage; 5) liquidity risk; 6) maturity mismatch
and 7) existing regulatory scrutiny.
Moves to address liquidity management and what has been almost a structurally inbuilt maturity mismatch
in Islamic finance are therefore to be most welcomed.
Credit challenges include a significant balance sheet maturity mismatch
and a high degree of asset concentration.