The duration of assets and liabilities offers an accurate indicator of interest rate risk. With banks primarily raising short term deposits and lending for longer maturity the asset-liability mismatches are significant, though banks are being encouraged to raise long tenor deposits through exemption of cash reserve requirements.
In the future, the Banking Union will help us resolve banking problems while avoiding using taxpayers’ money for bailouts. The Banking Union also means a more stable financial system in Europe as the likelihood of problems is reduced. The Single Rulebook provided the foundation for the Banking Union.