Sensitivity to Market Risk

Topics:
Credit Management,
Strategic Planning and Analysis
Tags:
ALM Professional,
Finance,
Financial Planning,
Financial Services,
Interest Rate,
Interest Rate Risk
Source:
ALM Professional

FREE Registration is required

Overview: This article is about "Sensitivity to Market Risk" denoted by "S". This "S" component rates the degree of market risk taken, management's ability to identify, measure, monitor, and control that risk, and the financial support provided by earnings and capital. Primarily, market risk results from interest rate, foreign exchange rate, commodity price, and equity price volatility. Clearly, most banks' principal market risk exposure is interest rate risk (IRR).IRR is the exposure of a bank's current or future earnings and capital to interest rate changes. Interest rate fluctuations affect earnings by changing net interest income and other interest-sensitive income and expense levels. Interest rate changes affect capital by altering banks' economic value of equity (EVE).

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: HTML | Pages: 1

People who downloaded this item also downloaded

Download Free Project Management Book (Windows)
Tools & Templates Business Valuation
White Paper Asymmetric Exposure to Foreign-Exchange Risk: Financial and Real Option Hedges Implemented by U.S. Multinational Corporations
Case Study Credit Risk Consulting at Global Financial Services Firm
White Paper Supervising Interest Rate Risk Management

Top results from Strategic Planning and Analysis

White Paper Designing High Availability for Internet Information Services
White Paper Law Firm Cuts IT Costs by 90 Percent, Dismisses Server Worries with Online Services
White Paper Business Value of Windows Server 2008 R2 Hyper-V and Live Migration
White Paper Improving IT service delivery through an integrated approach to software asset management white paper
White Paper Why Print Management Matters

» View all Strategic Planning and Analysis listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).