materialise in the form of a "policyholder run" if interest rates were to increase sharply. An inverse stress test based on a …Life insurers typically grant policyholders a surrender option. We demonstrate that the resulting lapse risk could … unique set of regulatory panel data suggests that German life insurers have become less resistant to an upward interest rate …

rate risk and to credit risk are remunerated, that banks' try to stabilize the mid-term net interest margin with exposure … to interest rate risk and that they act as if they have a risk budget which they allocate either to interest rate risk or … credit risk. …

This paper analyses theperformance ofmaturity transformation strategiesduring a period of high and low interest rates … sample periods. During theperiod of low interest rates,dominant strategies can be observed for short-term and medium … long-term assets are financed by short-term liabilities. Risk and return increase significantly with maturity gaps for both …

We investigate German banks' exposure to interest rate risk. In finance, higher demand for a risky asset is typically … associated with higher expected return. However, employing a utility function which implies both risk-averse and risk … rising interest rate exposure but also that this relationship does become weaker with falling operative income, its sign …

We investigate whether banks actively manage their exposure to interest rate risk in the short run. Using bank …-level data of German banks for the period 2011Q4- 2017Q2, we find evidence that banks actively manage their interest rate risk … opportunities of this risk. We also find that the customers' preferences predominantly determine the fixed-interest period of …

Communal responsibility, a medieval institution studied by Greif (2006), supported the use of credit among European …. Enforceability within each village's centralized afternoon market ensures collateralization of credit in decentralized markets. In … the resulting equilibrium, money and credit coexist in decentralized markets if the use of credit is costly. Our analysis …

interest rates tend to fall in response to sales of the domestic currency, whereas stock prices of large (exporting) firms … shocks significantly affect exchange rates and that this impact persists for months. We show for Japan and the US that …

simulations show that these two factors are significant determinants of the high shares of low-value cash payments in Canada …