Most banks and credit unions have similar business models – they fund long-term assets (loans to customers) with short-term liabilities (deposits from customers). Current market conditions, rising interest rates and a flattening yield curve, put pressure on this business model through increased interest rate risk. HedgeStar has written the attached e-book, The ABCs of Interest Rate Risk Management for Financial Depositories.
The purpose of the e-book is to discuss the following concepts:
- Define interest rate risk and provide techniques to measure interest rate risk
- Provide strategies for managing interest rate risk
- Discuss best practices for implementing and running an interest rate risk management program
The e-book is intended to be an introduction to these concepts. Whether you are an accountant, a financier, a member of your financial institution’s ALCO, or a director, we believe the concepts in the e-book will provide you with a beneficial overview of these topics. After reading the e-book, we welcome your questions and comments.
