FINANCE

Finance

Finance

Question 1

$ Every financial operation concludes that the Bank might affect the interest rate risk. Banks are, however, the level and degree of risk of interest rate they are willing to assume. Some banks seek to minimize their interest rate risk. Such banks generally do not hold positions take particular movements in interest rates. Rather, they are trying to match the maturities and revaluation of the date of their assets and liabilities. Rising interest rates provides a significant concentration of adjustable rate mortgage to the Bank for credit risk. For the Bank, which is largely financed by short-term liabilities increase could ...