The Office of Inspector General recommended adding an S category to the NCUA's CAMEL rating system to more effectively monitor interest rate risk
, according to a Nov.
Types of interest rate risk
in the banking book include banks getting a relatively low interest rate on investments such as mortgages, while being under competitive pressure to offer higher rates to depositors.
Global Banking News-March 27, 2015--Moody's says Irish life insurance firms 'least exposed' to interest rate risk
Interest rate risk
management is retaking center stage in the minds of financial services professionals as U.
Managing the interest rate risk
inherent in this mismatch is critical to bank survival.
The report identified interest rate risk
at nsurance companies as "one of a handful of serious vulnerabilities" about which the FSOC must maintain close scrutiny.
New Fund Can Help Investors Manage Interest Rate Risk
and Pursue Higher Yields
The nation's banks, thrifts, and credit unions must be particularly mindful of interest rate risk
, Federal Reserve System Vice Chairman Donald Kohn said in a January 29 speech on interest rate risk
management at a symposium sponsored by the Federal Deposit Insurance Corporation.
They are as follows: (a) a well-developed foreign exchange market; (b) a nominal anchor for monetary policy to replace the fixed exchange rate; (c) policy for central bank intervention in the foreign exchange market, that is the practice of buying or selling the local currency to influence its exchange rate; and (d) an exchange rate risk
management mechanism for monitoring and managing both public and private sectors exposure.
Second, key government officials, including Alan Greenspan, Douglas Holtz-Eakin, and John Snow, have recognized that F&F interest rate risk
creates significant systemic risks for the U.
At one firm, for example, the interest rate risk
exposure of every fixed-income security was translated into the corresponding quantities of two-year, 10-year and 30-year treasuries that, if sold, would offset that exposure.
Exchange rate risk
may come into play when assessing market opportunity; but it does not appear to be, in and of itself, a deterrent to investment, except in the case of outright currency crises.