THE MANAGEMENT OF INTEREST RATE RISK IN SMALL AND MEDIUM BANKS

Halid Konjhodžic () and Tonci Svilokos
Additional contact information
Halid Konjhodžic: University of Dubrovnik, Department for Economy and Business Economy, Croatia

JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, 2005

Abstract: The business banks make its decisions in the condition of certainty, risk and uncertainty. The risk is a condition when the possibility of every event is known. The risk can be measured with distribution of probabilities. The risk of interest rate is one of the main risks that bank have. They can suffer unfavourable changes of active and passive interest rates. The changes of interest rates have various influences on bank balance statement and on bank market value, so it is necessary to anticipate and to develop the methods to measure the risk and to manage the risk of interest rate. In theory and in practice there are various methods that use small and medium banks to manage the interest rates risk and this paper investigate the methods such are the management of assets and liabilities gap, the analysis of average time deposits, the futures contracts, options on interest rates and interest swap.

Keywords: Interest rate risk; risk management; assets and liabilities gap; the analysis of average time deposits; futures; options; interest swap (search for similar items in EconPapers)
JEL-codes: E43 G32 (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://tbs.ubbcluj.ro/RePEc/bbn/journl/2005_2_3_Konjhodzic.pdf Revised version, 2005 (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:bbn:journl:2005_2_3_konjhodzic

Access Statistics for this article

JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA is currently edited by Cornelia Pop

More articles in JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA from Babes-Bolyai University, Faculty of Business Contact information at EDIRC.
Bibliographic data for series maintained by Cornelia Pop ( this e-mail address is bad, please contact ).