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Risk and Return

C/F/801. Interest rate risks for banks

WORDS:
950
DATE:
2010
PRICE:
9.99 GBP

The aim of the report is to present the concept of interest rate risk faced by the banks with the help of both commercial and academic literature. The research highlights how Basel II accord has lead to the development of interest in the topic. The paper identifies that interest rate risk has become an essential consideration for banks as it can have significant impact on net interest income (NII) of the bank. The importance of identifying and controlling this risk has become intensified after the current financial crisis, which has impacted vulnerable banks in highly adverse manner than banks with low interest rate risks.

 

KEYWORDS: Basel II, Financial Management, Interest rate risk, Interest, Financial Instruments, net interest income, NII, interest rates, risk and return, banking, banks,

 
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