Interest rate risk is a phenomenon that is integral to the nature of banking. It is not always desirable to eliminate this risk, even if it is possible to do so, because banks would be denying themselves opportunities and hampering their ability to handle customer business profitably. This course looks at the structures banks put in place to manage interest rate risk and the various approaches to such management - from 'passive' responses such as the imposition of limit systems to 'active' responses involving hedging rate risk via derivatives.
Prior to completing this course it is recommended you undertake:
This online course forms part of the Intuition short course suite.