Asset–liability mismatch

Asset-liability mismatch is when you have things you owe (liabilities) that are due soon, but you don't have enough money (assets) to pay them back. It's like having to pay back a friend the money you borrowed, but you don't have enough money in your piggy bank to do it. This is a big problem for banks and companies because they need to make sure they have enough money to pay back their debts or they might go bankrupt. So, they need to make sure their assets and liabilities match up by planning ahead and managing their money properly. It's like putting the right amount of coins in the piggy bank so you can pay back your friend when you promised.