THE EFFECTS OF INTEREST RATE LEVELS AND VOLATILITY ON THE MATURITY INTERMEDIATION DECISION
In this paper, we examine the effect of changing interest rate levels and volatility on the maturity intermediation decisions o f a commercial bank. We point out the incentive for the bank to hold high risk long-term asset and liability maturity positions. Further, the greater the interest rate vola...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
People & Global Business Association (P&GBA)
2003-09-01
|
| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150624154445-PS7OC.pdf |