文章基本信息

标题：INTEREST RATE RISK MANAGEMENT IN REGIONAL RURAL BANKS: A CASE STUDY OF KRISHNA GRAMEENA BANK
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作者：Morage Prakash V. ; Boothpur Vijaya
期刊名称：Tactful Management
印刷版ISSN：2319-7943
电子版ISSN：2319-7935
出版年度：2015
卷号：3
期号：4
页码：1
出版社：Laxmi Book Publication
摘要：Banking business is mainly of dealing with others money by way of mobilizing deposit and deployment of funds through lending and investment. Interest received on loans and advances is revenue and interest paid on deposit to customers is expenditure for the bank. A change in the interest rates affects not only the earnings, but also the market values of all fixed rate instruments. The management of interest rate risk is fundamental to sound practice. If poorly managed, a bank can experience earnings, liquidity and ultimately capital adequacy problems. Interest rate risk management is the tool to measure and control the financial risk in the bank, which arises due to mismatch between the assets and liabilities. There are various methods of assessing interest rate risk management in bank viz., maturity gap, rate adjusted gap, duration analysis, simulation techniques, Value at Risk (VaR), derivatives etc. The present paper tried to analyse maturity gap technique of interest rate risk in Regional Rural Banks of Krishna Grameena Bank over a period of seven years from 2005-06 to 2011-12. The objective of this paper is to study the impact of change in interest rate on the earnings of the bank. Finally, the paper offers suitable suggestions based on the findings of the study to overcome the interest rate risk of the bank.
关键词：regional rural banks;krishna grameena bank;interest rate risk management;net interest income;net interest margin