Behavioral maturity

Definition

Behavioral maturity in plain English

Non-maturity deposits have no fixed contractual end date, yet their balances can be stable in normal periods and flighty in stress. ALM and liquidity models need separate behavioral assumptions.

Learn these first

• Contingency funding plan (CFP)
• Interest Rate Risk in the Banking Book (IRRBB)

Related FRM Part 2 terms

• Available and Required Stable Funding (ASF/RSF)
• Basis risk (IRRBB)
• Contingency funding plan (CFP)
• Counterbalancing capacity
• Cross-currency basis
• Deposit beta
• Duration gap
• Encumbrance
• Economic Value of Equity and Net Interest Income (EVE/NII)
• Funds Transfer Pricing (FTP)