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Interest rate risk management by EME banks

Author

Listed:
  • Julián Caballero
  • Alexis Maurin
  • Philip Wooldridge
  • Dora Xia

Abstract

Banks' management of interest rate risk depends on their business model as well as the environment in which they operate. In comparison with banks in many advanced economies, banks in emerging market economies (EMEs) make less use of interest rate derivatives. Instead, they mitigate the impact of rate changes on their net interest income by minimising repricing gaps between assets and liabilities. The management of interest rate risk might become more challenging with the expansion of EME banks' securities holdings.

Suggested Citation

  • Julián Caballero & Alexis Maurin & Philip Wooldridge & Dora Xia, 2023. "Interest rate risk management by EME banks," BIS Quarterly Review, Bank for International Settlements, September.
    • Handle: RePEc:bis:bisqtr:2309c
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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