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Liquidity risk and asset transformation risk. When bank received, they buy more risky assets but...

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Accounting

Liquidity risk and asset transformation risk.
When bank received, they buy more risky assets but received deficit that less risky or issue less risky assets.
When bank give out loan on that they take more risk but when the received deficit issue certificate those they make less risk.
What do they do and how do they do?

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