NBFCs borrow money (liabilities) and lend it to customers (assets). However, the timing and interest rates of these cash flows often differ. For example, an NBFC might borrow funds for one year but lend them for five years. This creates a mismatch that can lead to liquidity or profitability issues if not managed properly. Read more - https://enterslice.com/nbfc-as....set-liability-manage
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