bank-level data for German banks, we find evidence that a bank's exposure to interest rate risk depends on its presumed … optimization horizon. The longer the presumed optimization horizon is, the more the bank is exposed to interest rate risk in its … exposure to interest rate risk. The more a bank is exposed to the risk of a decline in the interest rate level, the higher its …

The interest rate risk is the degree of exposure of a bank's financial condition to adverse movements in interest rates …. Changes in interest rates affect a bank's earnings by changing its net interest income and the level of other interest …-sensitive income and operating expenses. Changes in interest rates also affect the underlying value of the bank's assets, liabilities …

individual bank level. We find that the choice of the term structure and the pass-through model is of limited importance for the …

bank equity returns are found to be sensitive to both anticipated and unanticipated changes in interest rates in the first … period when banks were largely under government control. However, during our last period of liberalization, Korean bank … the ability to manage other interest rate risks successfully, in this last liberalization period, Korean bank equity …

and (ii) above 50% of hedging banks use derivatives to increase exposure. We model a bank's capital structure, and show …Empirically, bank equity value is decreasing in the interest rate. Yet (i) many banks do not hedge interest rate risk … that these facts are consistent with optimal hedging under financial frictions. Novel predictions on the characteristics of …

deposit franchise, which allows banks to pay deposit rates that are low and insensitive to market interest rates. Hedging the …

bank-level data for German banks, we find evidence that a bank's exposure to interest rate risk depends on its presumed … optimization horizon. The longer the presumed optimization horizon is, the more the bank is exposed to interest rate risk in its … exposure to interest rate risk. The more a bank is exposed to the risk of a decline in the interest rate level, the higher its …