<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The banking system in Romania is a banking system under development, subject to fluctuations that exist on the market more than on more developed banking systems, fluctuations that can generate losses for banks if they are not properly managed. The losses that may be generated by these fluctuations, known as market risk, refer to the significant fluctuations in three indicators, namely the interest rate, the exchange rate and the asset price. In this article, I will analyse the interest rate risk from a conceptual point of view and the indicators that mitigate this risk. The analysis also contains a study of this risk among commercial banks in the system to highlight the level of risk and possible effects of its manifestation. I calculated and analysed the interest rate risk indicators, individually for the first three banks in the system, but also to comparatively, in order to highlight the existing differences.</p></abstract>

The banking system in Romania is a banking system under development, subject to fluctuations that exist on the market more than on more developed banking systems, fluctuations that can generate losses for banks if they are not properly managed. The losses that may be generated by these fluctuations, known as market risk, refer to the significant fluctuations in three indicators, namely the interest rate, the exchange rate and the asset price. In this article, I will analyse the interest rate risk from a conceptual point of view and the indicators that mitigate this risk. The analysis also contains a study of this risk among commercial banks in the system to highlight the level of risk and possible effects of its manifestation. I calculated and analysed the interest rate risk indicators, individually for the first three banks in the system, but also to comparatively, in order to highlight the existing differences.

Risk of Interest Rates at the Level of Commercial Banks in Romania

Land Forces Academy Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Risk of Interest Rates at the Level of Commercial Banks in Romania"}

The banking system in Romania is a banking system under development, subject to fluctuations that exist on the market more than on more developed banking...

Risk of Interest Rates at the Level of Commercial Banks in Romania

Published Online: Jan 19, 2018

Page range: 281 - 288

DOI: https://doi.org/10.1515/raft-2017-0038

Keywords
interest rate, market risk, sensitivity index, GAP, banking system

© 2017 Ioana Raluca Sbârcea, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Risk of Interest Rates at the Level of Commercial Banks in Romania

Published Online: Jan 19, 2018

Page range: 281 - 288

DOI: https://doi.org/10.1515/raft-2017-0038

Keywordsinterest rate, market risk, sensitivity index, GAP, banking system

© 2017 Ioana Raluca Sbârcea, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
interest rate, market risk, sensitivity index, GAP, banking system