01764cas a2200241 a 4500 AALejournalIMF018307 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484345184 1018-5941 BD-DhAAL BD-DhAAL Bologna, Pierluigi. Banks' Maturity Transformation : Risk, Reward, and Policy / Pierluigi Bologna. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The aim of this paper is twofold: first, to study the determinants of banks' net interest margin with a particular focus on the role of maturity transformation, using a new measure of maturity mismatch; second, to analyse the implications for banks from the relaxation of a binding prudential limit on maturity mismatch, in place in Italy until mid-2000s. The results show that maturity transformation is a relevant driver of the net interest margin, as higher maturity transformation is typically associated with higher net interest margin. However, 'excessive' maturity transformation- even without leading to systemic vulnerabilities- increases banks' interest rate risk exposure and lowers their net interest margin. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2018/045 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/045/001.2018.issue-045-en.xml IMF e-Library