and (ii) above 50% of hedging banks use derivatives to increase exposure. We model a bank's capital structure, and show … that these facts are consistent with optimal hedging under financial frictions. Novel predictions on the characteristics of …' derivatives exposures are not necessarily evidence of excessive risk-taking, and can be explained by hedging in the presence of …

This paper investigates determinants of banks' structural exposure to interest rate risk in their banking book. Using … banking book. Moreover, there is evidence that banks hedge their earnings risk resulting from falling interest levels with …

banks managed their overall interest rate risk exposure by means of on-balance-sheet restructuring complemented by hedging …

We present a coherent management framework for non-maturity accounts to derive the hedging strategy from the marketing … rate and marketing assumptions and to build the dynamic hedging strategy …

by hedging with financial derivatives. But the complementary relationship between risk-management decisions differs …

Indian Banking Industry – An Analytical Research Study” is aimed at measuring the Interest Rate Risk in one of the public …