Interest Rate Risk Management by EME Banks study notes cover the following learning objectives:
Describe the mechanisms through which changes in market interest rates affect a bank’s economic value and the key methods banks use to manage interest rate risk.
Compare the methods banks in emerging market economies (EME) and banks in advanced economies have historically used to manage their interest rate risk and how these methods affected their vulnerability to changes in interest rates.
Explain the recent changes in EME banks’ exposure to interest rate risk and the importance of hedging this risk.