Percy, there is a mismatch in the maturity of term deposits and the underlying loans. PT has batted this away by saying all banks operate in this way. But I put it to you and PT that to say there is no effect from this mismatch is not true.
If you look at section 4.48 of my reference,
http://www.rbnz.govt.nz/regulation_a...ok/3272068.pdf
there is even a formula to calculate the amount of extra capital Heartland must hold because of this.
More information is in the ensuing 4.115 and 4.116 sections
SNOOPY