The Hedging of Interest Rate Risk in Enterprises’ Loans (Zabezpieczenie ryzyka stopy procentowej w kredytowaniu dzialalnosci przedsiebiorstw)

Monika Klimontowicz () and Anna Pyka ()
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Monika Klimontowicz: Uniwersytet Ekonomiczny w Katowicach, Katedra Bankowosci i Rynkow Finansowych
Anna Pyka: Uniwersytet Ekonomiczny w Katowicach, Katedra Bankowosci i Rynkow Finansowych

Research Reports, 2018, vol. 1, issue 27, 54-64

Abstract: The improving economic situation, loosened credit policy of banks and a low level of interest rates foster the increase in enterprises’ credit obligations. Variable rates that are characteristic of those credits cause some difficulties in capital cost estimation resulting from the risk of interest rate increase. To meet enterprises’ expectations, banks are offering a range of products aimed at hedging such a risk. The purpose of the paper is to define the prerequisites for using interest rate hedging instruments in enterprises’ policies. It required characterising the nature of transactional risk resulting from interest rate changes, presenting financial instruments offered by banks operating on the Polish banking market and analysing advantages and threats connected with such transactions.

Keywords: interest rate risk; interest rate swap; forward rate agreements; currency interest rate swap; interest rate options (search for similar items in EconPapers)
JEL-codes: G11 G12 G21 M21 (search for similar items in EconPapers)
Date: 2018
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