According to Anne O. Krueger of the IMF, the combination of fixed exchange rates and unsustainable debt burdens can amplify the impact of currency mismatch risk.
[1] Krueger proposes sound economic policies of reducing public debt and managing capital flows as ways of mitigating these crises.
According to research from Bank of International Settlements, the risk presented by aggregate currency matches (at the national level) may be mitigated by stronger foreign exchange positions by the government sector.
[3] Duration mismatch is an indication of a firm with liquidity problems, and it may be measured using the quick ratio, acid test, or similar accounting metrics.
As a result, clients withdrew funds from depository institutions, creating immense financial pressure when combined with declining real estate prices.
On the other hand, a 'controlled' mismatch, such as between short-term deposits and somewhat longer-term, higher-interest loans to customers is central to many financial institutions' business model.