Advanced Search
MyIDEAS: Login to save this article or follow this journal

Interest Rate Risk Management In Banking

Contents:

Author Info

  • Lect. Ph.D Imola Driga
  • Lect. Ph.D Anca Jarmila Guta
  • Lect. Ph.D Dorina Nita

    (University of Petrosani, Faculty of Sciences, Petrosani, Romania)

Abstract

Financial intermediation often exposes banks to interest rate risks by creating mismatches in the maturity structure and re-pricing terms of their assets and liabilities. The interest rate risk is along with the liquidity risk a fundamental risk associated to the management of bank resources. Both types of risk are caused by the uncertainty regarding the way depositors may withdraw their investments in case of interest rate variation, on one hand, and by the uncertainty that involves the interest rate paid by the commercial bank to its customers in order to attract and keep funds in form of deposits, on the other hand. The interest rate risk expresses the loss registered by the bank because of the unexpected evolution of the interest rate.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://feaa.ucv.ro/RTE/014-6.pdf
Download Restriction: no

Bibliographic Info

Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Revista Tinerior Economisti(The Young Economists Journal).

Volume (Year): 1 (2010)
Issue (Month): 14 (April)
Pages: 41-48

as in new window
Handle: RePEc:aio:rteyej:v:1:y:2010:i:14:p:41-48

Contact details of provider:
Postal: Str. A.I. Cuza nr. 13, Craiova
Phone: 004 0251 411317
Fax: 004 0251 411317
Email:
Web page: http://feaa.ucv.ro/
More information through EDIRC

Related research

Keywords: interest rate risk; sensitive assets and liabilities; assests-liabilities management; GAP analysis;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aio:rteyej:v:1:y:2010:i:14:p:41-48. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ionascu Costel).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.