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Interest Rate Competition, Structure and Forecasting

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Abstract

An important objective of asset-liability management is to minimize the exposure of a bank’s net operating cash flow, and its equity, to changes in interest rates. Achieving this objective would be facilitated if bank management in developing financial markets clearly understands the nature of interest rate competition and the relationship between yields, prices and maturities of investment securities. In addition, the achievement of this objective is facilitated if management has the ability to forecast interest rate changes, and appropriately adjust the bank’s portfolios to these changes.

Keywords

Interest Rate Monetary Policy Financial Market Money Supply Yield Curve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Wilbert O. Bascom 1997

Authors and Affiliations

  1. 1.First Equity CorporationUSA

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