The widespread notion that commercial banks “borrow short and lend long” implies that sharp market interest rate increases may induce a significant number of banking failures. In the process of interest rate deregulation, market interest rates have become more volatile than even. The impact of volatile market interest rates on profitability of banks has been increasingly concerned. We estimate average asset and liability maturities for a sample of listed banks in this paper. We investigate whether average asset and liability maturities match. We also test whether market rate fluctuations have a significant impact on profitability of banks. The findings indicate that the listed banks tend to borrow long and lend short, though the maturity differences are not large. They hypothesis of “borrow short and lend long” as documented in traditional financial management of commercial banks is not accepted. The listed banks have effectively hedged themselves against market rate risk by assembling asset and liability portfolios with similar average maturities. In the long run, the profitability of most listed banks is stable. Furthermore, large banks wit more liquid and interest-sensitivity assets and liabilities have arbitrage opportunities through good asset-liability management.