Management of interest risk in a commercial bank under the conditions of the modern market

• Main Authors: N. V. Magzumova, V. V. Naydenova
• Format: Article
• Language: Russian
• Published: Southern Institute of Management 2018-12-01
• Series: Научный вестник Южного института менеджмента
• Subjects: commercial bank; interest rate risk; financial market; interest rate risk management; tariff and interest rate policy
• Online Access: https://www.uimjournal.com/jour/article/view/324

In the economy of our country, under the influence of the wave of economic crisis, a situation has developed that has significantly affected the activities of commercial banks that are participants in the financial market. In recent years, there has been a consistently high amplitude of global changes in financial markets, due to the crisis and instability of the political situation in the country. All this affects the functioning of commercial banks, especially in the regulation of interest rates. The banking sector is constantly faced with all sorts of risks. Interest rate risk is rightly recognized as the most important bank risk. According to the Central Bank of theRussian Federation, interest rate risk is the risk of financial losses (losses) that arise as a result of an unfavorable change in interest rates on assets, liabilities and off-balance sheet instruments. Interest rate risk management in commercial banks has become complicated due to the current economic and political situation in our country, as well as the instability of market conditions. The development of practical recommendations aimed at improving the interest rate risk management system in a commercial bank is an urgent task for any commercial bank.