, and can surge at times of currency speculation. Heightened interest rate and exchange rate volatility pose practical risk … risk containment, as well as for good macropolicies. On the other hand, the cost of equity capital has been reduced by … through the equity markets have not been the major contributor to increased international sources of volatility. In addition …

"This paper examines the implications of bank activity and short-term funding strategies for bank risk and returns …-interest income generating activities such as trading increases the rate of return on assets, and it may offer some risk …, although it can offer some risk reduction at commonly observed low levels of non-deposit funding. A sizeable proportion of …