Empirically, bank equity value is decreasing in the interest rate. Yet (i) many banks do not hedge interest rate risk … and (ii) above 50% of hedging banks use derivatives to increase exposure. We model a bank's capital structure, and show …

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 …

?In this paper investigation has been made on the effects of interest rates volatility on stock market returns using daily … predictive power for volatility. It has been found that for 10 out of 32 banks in our sample would be gained or lost 30% of … bank stocks …

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 …