Home > Term: golden rule of banking
golden rule of banking
A principle which states that the maturities of the loans granted by a bank should be congruent with, or match, the maturities of the deposits used to finance such loans. According to the rule, short-term transactions should be financed with short-term money, long-term transactions with long-term funds.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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