Question: The following plot shows the weighted average maturity of interest rate sensitive TL and FX assets and liabilities for Turkish banks. The statistics are

The following plot shows the weighted average maturity of interest rate sensitive TL and FX assets and liabilities for Turkish banks. The statistics are published in Financial Stability Report of Central Bank of Turkey. (Note: Left Y axis indicates the maturities for maturity gap while Right Y axis shows maturities for assets and liabilities.) Chart IV.3.1: Weighted Average Maturity of Interest Rate-Sensitive TL Assets and Liabilities (Month) 10 8 7 6 5 06.20 Asset Avg. Maturity - Liability Avg. Maturity Avg. Maturity Gap (LHA) 03.22 18 852 15 12 9 9 Chart IV.3.2: Weighted Average Maturity of Interest Rate-Sensitive FX Assets and Liabilities (Month) 5 06.20 09.20 Asset Avg. Maturity -Liability Avg. Maturity Avg. Maturity Gap (LHA) 12.20 03.21 03.22 20 18 16 14 12 10 a) Interpret the maturity gap (or mismatch) in Turkish banking sector? (4 points)

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