Most banks and credit unions have similar business models – they fund long-term assets (loans to customers) with short-term liabilities (deposits from customers). Current market conditions, rising interest rates and a flattening yield curve, put pressure on this business model through increased interest rate risk. HedgeStar has written the attached e-book, The ABCs of Interest Rate Risk Management for Financial Depositories.
The purpose of the e-book is to discuss the following concepts:
Define interest rate risk and provide techniques to measure interest rate risk
Provide strategies for managing interest rate risk
Discuss best practices for implementing and running an interest rate risk management program
The e-book is intended to be an introduction to these concepts. Whether you are an accountant, a financier, a member of your financial institution’s ALCO, or a director, we believe the concepts in the e-book will provide you with a beneficial overview of these topics. After reading the e-book, we welcome your questions and comments.