This paper deals with risk mitigation of interest rate margins related to banks demand deposits. We assume that deposits are linked rates and business risk, which cannot be fully hedged on financial markets. The dynamics forward market follows a standard model (i.e. BGM model). deposit is the monetary amount put in account by clients. It accounting M1 (monetary aggregate 1). Using linear regres...

Previous research has documented a behavioral distinction between “social risk” and financial risk. For example, individuals tend to demand a premium on the objective probability of a favorable outcome when that outcome is determined by a human being instead of a randomizing device (Bohnet, Greig, Herrmann, and Zeckhauser 2008; Bohnet and Zeckhauser 2004). In this paper we ask whether social ri...

We seek to determine the optimal amount of the insurer’s investment in all types of assets for a small and closed economy. The goal is to detect the implications and contributions the risk seeker and risk aversion insurer commonly make and the effectiveness in the investment decision. Also, finding the optimum portfolio for each is the main goal of the present study. To this end, we adopted the...

Interest rate risk measurement and management of non-maturity deposit balances presents a challenge for practitioners academic researchers as well. The paper provides review several methodological approaches focusing on the area savings accounts sensitivity modeling estimation. proposed models are tested Czech banking sector dataset providing mixed results regarding cointegration type generally...