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Accounting
Banking

Transformation

The process whereby a bank capitalizes on some sort of mismatch between its assets and liabilities. In other words, this involves a bank’s attempt to...

Liquidity Transformation

A type of transformation that involves the use of short-term debts like deposits to finance long-term investments like loans. In other words, it is an intermediation process...

Maturity Transformation

A type of transformation whereby a bank or any similar institutions takes advantage of the upward slope of the yield...

Asset Transformation

A type of business transformation whereby a company changes the very nature of an asset: by replacing/ exchanging it for...

Information Transformation

A type of transformation whereby banks aim to mitigate the effect of information asymmetry in their relationship with their clients....

Asset Transformation

A type of transformation whereby banks use deposits (mobilized funds) to generate revenue by pooling deposits to make loans. More...