Interest Rate Risk in the Banking Business

Borislav Radevic and Ahmedin Lekpek

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2011, vol. 57, issue 01

Abstract: Immanent part of the banking business is interest rate risk, whose presence significantly affects on the business performance of the bank. The current conditions of crisis and instability in the market are best manifested through exactly this kind of banking risks. Given that the banks can not eliminate its presence, its commercial success depends significantly on the ability of their management to detect interest rate trends and potential sources of interest rate risk, and to build effective mechanisms of protection against risks. The aim of this paper is to introduce ways of expression of this risk, as well as the methods used in modern banking to reduce the negative consequences of the existence of this risk to the bank.

Keywords: Public; Economics (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/288594/files/1-2011%20pages%2097-107.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:288594

DOI: 10.22004/ag.econ.288594

Access Statistics for this article

More articles in Ekonomika, Journal for Economic Theory and Practice and Social Issues from Society of Economists Ekonomika, Nis, Serbia
Bibliographic data for series maintained by AgEcon Search ().