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Interest Rate Volatility and Risk in Indian Banking

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Author Info
Ila Patnaik
Ajai Shah

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Abstract

The easing of controls on interest rates has led to higher interest rate volatility in India. Hence, there is a need to measure and monitor the interest rate exposure of Indian banks. Using publicly available information, this paper attempts to assess the interest rate risk carried by a sample of Indian banks in March 2002. We find evidence of substantial exposure to interest rates.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 04/17.

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Length: 27 pages
Date of creation: 13 Feb 2004
Date of revision:
Handle: RePEc:imf:imfwpa:04/17

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Related research
Keywords: Interest rates ; India ; Banks ;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Carmen M. Reinhart & Kenneth S. Rogoff, 2002. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," NBER Working Papers 8963, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Ila Patnaik & Ajay Shah, 2005. "Interest-rate risk in the Indian banking system," Risk and Insurance 0501003, EconWPA. [Downloadable!]
  3. Taimur Baig, 2001. "Characterizing Exchange Rate Regimes in Post-Crisis East Asia," IMF Working Papers 01/152, International Monetary Fund. [Downloadable!]
  4. Guillermo A. Calvo & Carmen M. Reinhart, 2000. "Fear of Floating," NBER Working Papers 7993, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. David M. Wright & James V. Houpt, 1996. "An analysis of commercial bank exposure to interest rate risk," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Feb, pages 115-128.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Amadou N. R. Sy, 2005. "Managing the Interest Rate Risk of Indian Banks' Government Securities Holdings," IMF Working Papers 05/78, International Monetary Fund. [Downloadable!]
  2. Kenneth Kletzer, 2004. "Liberalizing Capital Flows in India: Financial Repression, Macroeconomic Policy and Gradual Reforms," Santa Cruz Department of Economics, Working Paper Series 1006, Department of Economics, UC Santa Cruz. [Downloadable!]
    Other versions:
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This page was last updated on 2009-12-17.


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