Unmatched Book
Categories: Trading
A bank balance sheet involves assets and liabilities. In a broad sense, that fact applies to every company. But bank balance sheets have an additional kind of balancing to worry about.
Banks carry a lot of loans as assets...it's their main business. These loans have maturity dates: 30-year mortgages, 5-year car loans, etc. Ideally, the bank wants to get the maturities on the asset side of their balance sheet in line with the maturities on the liability side. They want money coming in as they have money going out.
An unmatched book refers to a bank balance sheet where these maturities are out of whack. The maturities on the asset side don't line up with those on the liability side.
