Maturity transformationFinancial Markets HistoryThe practice of borrowing short-term (deposits) and lending long-term (mortgages, business loans).Learn about this termUnit 02: birth of bankingFinancial Markets HistoryRelated TermsFractional reserve bankingA system where banks keep only a fraction of deposits in res...Bank runA situation where depositors rush to withdraw funds, potenti...LiquidityThe ability to convert assets to cash quickly without signif...