Managing the Interest Rate Risk of Indian Banks' Government Securities Holdings /

The large holdings of government securities by banks in India draw attention to their risk as interest rates are at historical low levels. This paper measures such a risk using duration and value-at-risk methods and assesses its current management by banks. The main finding is that some public secto...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Sy, Amadou
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2005.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2005/078
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:The large holdings of government securities by banks in India draw attention to their risk as interest rates are at historical low levels. This paper measures such a risk using duration and value-at-risk methods and assesses its current management by banks. The main finding is that some public sector and old private banks are vulnerable to a reversal of the interest rate cycle, while foreign and new private banks have built adequate defenses. In this regard, the paper makes a number of recommendations regarding government policies and individual bank practices to manage interest rate risk.
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Beschreibung:1 online resource (17 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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