Interest risk

Interest risk
  The risk that the market value of the bank is exposed to fluctuations in interest rates. This risk is quantified by the interest risk position/mismatch/gap. See also Interest risk. Related reports are:
• Overall mismatch.
• Mismatch per book.
• Mismatch per product.
  These three reports give information about the mismatch per currency versus limits. Reports can also specify the overall mismatch, mismatch per book, mismatch per product. The mismatch per book and mismatch per product reports are printed per currency per book. Three basic books exist:
  Forex (forex purchases, sales, forex swaps, currency futures, etc.).
  Money market -accruals (deposits, loans, FRA and IRS-hedging, etc.).
  Money market - trading (FRA and IRS-trading).
  The overall mismatch report combines all three books. The reports are printed per currency. See also Position, position administration tables, standard position codes, combined position code, risk management, foreign exchange risk, forex, open currency position, mismatch, liquidity risk, forward revaluation, interest revaluation, break even and nostro projection.

International financial encyclopaedia . 2014.

См. также в других словарях:

  • Interest risk position —   Difference between interest maturities of assets plus contingent assets and interest maturities of liabilities plus contingent liabilities measured over a defined period, being the measure of the interest rate risk. Also known as the interest… …   International financial encyclopaedia

  • Risk management —   Risk management is the management that is engaged in the control and monitor the risks of the bank. They must be aware of the exposure of the bank as a whole at any time.   The following reports exist to manage the following risks (created by… …   International financial encyclopaedia

  • Risk premium — A risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk free asset, in order to induce an individual to hold the risky asset rather than the risk free asset. Thus it is… …   Wikipedia

  • Interest rate analysis —   Is used to show the analysis on what if situations if the mismatched book is closed at the market rate and what will happen to the interest flow if market rates go up/down by a certain percentage.   The total interest book is split into two… …   International financial encyclopaedia

  • Interest result —   Is usually shown in two reports: • Break even rates report. • Interest rate analysis.   See also Position, position administration tables, Standard position codes, Combined position code, Risk management, Foreign exchange risk, Forex, Open… …   International financial encyclopaedia

  • Risk —   The chance of loosing money. See also Risk management, Foreign exchange risk, interest risk, Liquidity risk and Country risk …   International financial encyclopaedia

  • Interest rate risk —   Refer instead to Interest risk …   International financial encyclopaedia

  • Interest rate risk — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… …   Wikipedia

  • interest rate risk — ( IRR) The potential that changes in market rates of interest will reduce earnings and/or capital. The risk that changes in prevailing interest rates will adversely affect assets, liabilities, capital, income, and/or expense at different times or …   Financial and business terms

  • Risk — takers redirects here. For the Canadian television program, see Risk Takers. For other uses, see Risk (disambiguation). Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable… …   Wikipedia


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