The term structure of interest rates and the asset and liability decisions of a financial intermediary

Article Abstract:

Financial institutions have focused attention on interest rate risk management. In particular, this attention has been largely aimed at determining asset-liability management practices which could transfer interest rate risk toborrowers and/or lenders. A two-period equity valuation model is used to establish optimal levels of asset and liability choices. It is indicated that asset and liability decisions are a function of the term premium in interest rates and of the covariance of asset and liability rates with the market rate and the market value of assets among others.

Economic aspects, Risk management, Asset-liability management (Banking), Asset liability management (Banking)

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Bank capital regulation, asset risk, and subordinated uninsured debt

Article Abstract:

The issuance of uninsured debt heavily influences the reaction of bank to a more stringent capital requirement. If a bank holds both insured and subordinated uninsured liabilities, it increases asset risk. The bank that issues insured deposits and subordinated uninsured debt, decreases its asset risk when deposit insurance is free, but the results are not clear when insurance premium rises proportionately to insured deposits.

Legal issues & crime, Government regulation (cont), Government regulation, Science & research, Management dynamics, Legal/Government Regulation, Research, Laws, regulations and rules, Company business management, Bank assets

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Multimarket bank pricing: an empirical investigation of deposit interest rates

Article Abstract:

A study is conducted to examine the factors that impact the deposit interest rates offered by geographically diversified banking organizations.

United States, Interest Rates

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