Unit 17: Understanding Interest Rate Risk
Video Length: 24 Minutes Released: September 2016 Presenter: Ben Lewis |
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Is your bank ready for a rising rate environment? Interest rates have been at historically low levels for several years now, which has led to margin compression throughout the banking industry. But a rising rate scenario isn’t necessarily a solution to that problem, depending on how the bank has structured its balance sheet. This video will provide a broad overview of how interest rates impact a typical bank, review the fundamentals of asset/liability management and identify the questions that bank boards should be asking management about how rising rates would affect their institution.
Topics include:
- What Is Interest Rate Risk?
- Asset/Liability Management
- Solutions to Address Interest Rate Risk
A glossary of banking terms is included with each video unit.
About the presenter
Ben Lewis works in Chatham’s Hedge Advisory group advising financial institutions in the western United States. He manages relationships with community and regional financial institutions to help hedge their balance sheet interest rate risk through the use of derivatives as well as enable them to offer derivative products to their qualified commercial borrowers.