(1) Maturity mismatch: a difference between the interest rate maturities of a banks assets and liabilities. (interest rate risk) (2) Mismatch of amounts raised and lent in a particular currency. (foreign exchange risk).
an RPF failure, which can be rate limited if this feature is enabled
A mismatch occurs when the remaining term of rate sensitive assets in a portfolio differs from that of rates sensitive liabilities. An interest rate exposure results since a change in interest rates affects income earned by a Financial Institution on loans and interest paid on deposits.