Accountancy, asked by farhadtmg, 3 months ago

Briefly explain how banks managa interest rate risk?

Answers

Answered by itzsecretagent

67

Answer:

There are two ways in which a bank can manage its interest rate risks:

(a) by matching the maturity and re- pricing terms of its assets and liabilities and
(b) by engaging in derivatives transactions.

ʜᴇʟᴘғᴜʟ ғᴏʀ ʏᴏᴜ✨

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