Management Of Interest

Rate Risk In Banks

Developed by: Dr. IKRAM

12/17/2009 Presenter: Dr. IKRAM 1

Agenda Items
for the Session:

What is Interest Rate Risk

What are the types of Interest Rate Risks

Effects of Interest Rate Risks Measurement

of Interest Rate Risks

Strategies for Controlling Interest Rate Risks

Basel Committee Recommendations

Sound Interest Rate Risk Management

Practices

12/17/2009 Presenter: Dr. IKRAM 2

 Interest Rate Risk (IRR)

Definition: It is the potential loss from

unexpected changes in interest rates
which can significantly alter a banks
profitability and market value of
equity.

12/17/2009 Presenter: Dr. IKRAM 3

 Interest Rate Risk .. explained

The amount at risk is a function of the

magnitude and direction of interest rate
changes and the size and maturity
structure of the mismatch position.
If interest rates rise, the cost of funds
increases more rapidly than the yield
on assets, thereby reducing net income.
If the exposure is not managed properly
it can erode both the profitability
and shareholder value.
12/17/2009 Presenter: Dr. IKRAM 4
 Interest Rate Risks - Types

Interest Rate Risks

Yield Curve Embedded

Repricing Risk Basis Risk Risk Option Risk

12/17/2009 Presenter: Dr. IKRAM 5

 Repricing Risk
Arises on account of mismatches in rates
Can be measured by the measure of risk in different time
buckets
Information needed
Balance sheet -on & off on a particular day
Business plan & expected income/ exp. ignored
Static vs Dynamic

Liabilities Assets Spread

Capital @ ROI Maturity Investment @ Maturity
(Crore) (Crore) ROI
Scenario-1 9% One year Rs100 10% Two year Profit
Rs100 1%(1crore)
Scenario-2 11% 2nd year Rs100 10% Two year Loss
Rs100 1%(1crore)

12/17/2009 Presenter: Dr. IKRAM 6

 Mismatched Repricing Periods of Assets/Liabilities

Liabilities Assets Spread

Capital @ ROI Maturity Investment @ ROI Maturity
(Crore) (Crore)
Scenario-1 Fixed Rate Profit
Rs100 8% 91 days Rs100 10% 91 days 2%(0.49crore)
Scenario-2 Fixed Rate Profit
Rs100 9% 91 days Rs100 11% 91 days 2%(0.49crore)
Scenario-3 Float Rate Profit
Rs100 8% 91 days Rs100 10% (1st month)
30 days 2%(0.164crore)
Float Rate Profit
11%(2nd month) 61 days 3%(0.5crore)
Asset
Sensitive Total: 0.664 Crore
Scenario-4 8% 91 days Rs100 Fixed Rate
Rs100 10% 5 years
9% 91 days
Liability
Sen112/17/2009
s2i/t1i7v/e
2009 Presenter: Dr. IKRAM 7
 Basis Risk
Interest rates on assets and liabilities do not change in the
same proportion.

When Bank Rate was raised by 2%, PLR was raised by 1% and
deposit rates by 1.5%

Interest rates movement is based on market perception of risk

and also market imperfections.

Therefore, basis risk arises when interest rates of different

assets and liabilities change in different magnitudes.

The `basis form of IRR results from the imperfect correlation

between interest adjustments when linked to different index
rates despite having the same re-pricing characteristics.

12/17/2009 Presenter:
Presenter:
Dr. Dr.
Vighneswara
IKRAM 8
 Basis Risk An Illustration
Repricing Liabilities (Rs Crores) Repricing Assets(Rs Crores)
Savings Deposit 50 Call Money 50
Fixed Deposit 50 Cash Credit 40
Total 100 Total 90
Gap(-) 10

Calculation of Standardised Gap Fall in Rates Fall in Amount

(Rs Crores)
Call Money 50 * 1.0% 0.50
Cash Credit 40 * 0.7% 0.28
A. Decrease in Interest Income (-) 0.78
Savings Deposit 50 * 0.5% 0.25
Fixed Deposit 50 * 0.4% 0.20
B. Decrease in Interest Expense (+) 0.45
Loss in Net Interest Income (A-B) (-) 0.33(Rs 33 Crores)
12/17/2009 Presenter: Dr . Vighneswara 9
12/17/2009 Presenter: Dr. IKRAM 9
 Embedded Option Risk
Risks arising out of prepayment of loans and bonds (with
put or call options) and / or premature withdrawal of
deposits before their stated maturity dates.

Liabilities Assets Spread

Capital @ Maturity Loan @ ROI Maturity
(Crore) ROI (Crore)
Scenario-1 8% 90 Rs100 10% 90 Profit
Rs100 days days 2%(0.49crore)
Scenario-2 8% 90 Rs100 10% 90 2%(0.164crore)
Rs100 days days for 30days

Int. Rates 60 1%(0.164crore)

decline after 30 days for 60 days
days to 9%
Total 0.328 crore
12/17/2009 Presenter: Dr. IKRAM 10
 Yield Curve Risk

Risks caused due to the change in the

yield curve from time to time depending
on the repricing and various other
factors.
Yield Curve is the relation between
the interest rate (or cost of borrowing)
and the time to maturity of the debt
for a given borrower in a given
currency.

12/17/2009 Presenter: Dr. IKRAM 11

 Yield Curve Risk ..

What is shape of Yield Curve

Yield Curve Yield Curve
yield curve Risk

The shape of the The risk of

Yield Curve is yield curve is TEXT
the relation experiencing
influenced by supply an adverse
between the and demand. The
interest rate shift in
yield curve may also
(or cost of be flat or hump-
market
borrowing) and shaped, due to interest rates
the time anticipated interest associated
to maturity of rates being steady, with
the debt for or short-term investing in a
given
a volatility
borrower in
fixed income
outweighing long- instrument.
a given term volatility.
currency .
12/17/2009 Presenter:
Presenter:
Dr. Dr.
Vighneswara
IKRAM 1
12
 Yield Curve Risk An Illustration

Liabilities Assets Spread

Capital @ ROI Maturity Loan @ ROI Maturity
(Crore) (Crore)
Scenario-1 3 year Loan 16% 3 year Profit
Rs100 13.5% fixed(quar Rs100 Reference: float(qua 2.5%
Reference: terly 364 day T-Bill @13%
rterly (2.5crore)
91 day T-Bill repriced)
repriced)
@12.5%
Scenario-2 90 90 Profit
Rs100 15% days Rs100 16% days 1.0%
Reference: Reference: (1crore)
91 day T-Bill 364 day T-Bill @13%
@14%

Date 91 T-Bill Deposit 364 T-Bill Loan Spread

22.05.2008 4.48% 5.48% 4.62% 7.62% 2.14%
08.08.2008 4.93% 5.93% 4.85% 7.85% 1.92%
5.7P1
re%
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hn4e%
08
12./1
127/.220908
00 4.71% swara 7.24% 1.53% 131
12/17/2009 Presenter: Dr. IKRAM
 Interest Rate Volatility
Impact of Interest Rate Volatility on the Net
Interest Income
IMPACT OF INCREASE / DECREASE IN RATE OF INTEREST ON NII
COL1 COL2 COL3 COL4 COL5

Maturity pattern RSL - OUTFLOWS RSA - INFLOWS GAP - RSA -

RSL CHANGE IN NII FOR
0.25 % DECREASE
1- 14 DAYS 18785. 15920. - 7.16
27 09 2865.1
8
15 - 28 DAYS 31772. 31161. - 1.53
55 34 611.2
1
29 DAYS - 3 MTS 68403. 77914. 9511. (-23.78)
39 78 39
12/17/2009 Presenter: Dr. IKRAM 1
3-6 MONTHS 87629. 90673. 3043. (-7.61)
 Measurement of IRR

Approaches to Measure IRR

Maturity Duration
Gap Simulation Value at
Gap
Analysis Risk
Analysis

12/17/2009 Presenter: Dr. IKRAM 15

 Maturity Gap Analysis

MGA distributes
interest rate sensitive
assets, liabilities and OBS
positions into a certain
number of predefined time
bands according to their
maturity(if fixed rate) or
time remaining to their next
repricing(if floating rate)

12/17/2009 Presenter: Dr. IKRAM 16

 Maturity Gap Analysis ..

How is it done?
The risk sensitive
What is the Gap?
Objective: assets and risk
The gap is then
To improve sensitive liabilities
calculated by
the net interest are grouped into
considering the
income in the maturity buckets
difference between
short run over based on maturity
the absolute
discreet and the time until the
values of the RSAs
periods of time first possible
and RSLs.
called the gap repricing due to
RSG=RSAs-RSLs
periods. change in the interest
rates

Relative differences in each maturity bucket represents the sensitivity in

that band.
12/17/2009 Presenter: Dr. IKRAM 17
 Maturity Gap Method (IRS)

Three Options:
A) RSA>RSL= Positive Gap
B) RSL>RSA= Negative Gap
C) RSL=RSA= Zero Gap

12/17/2009 Presenter: Dr. Vighneswara 18

12/17/2009 Swamy
Presenter: Dr. IKRAM 1
 Maturity Gap Analysis Option-1
Liabil Rate Increase Decreased Asset Rate Increase Decreased
ity % d Rate% (Crores) % d Rate%
(Crores) Rate% Rate%
200 200
1800* 10 11 9 800* 12 13 11
3000 11 11 11 1000* 14 15 13
1000* 16 17 15
2000 18 18 18
5000 5000
Int 510 528 492 Int 756 784 728
Expe income
nse
NII= 246 256 236

A case of Positive Gap:

RSAs= Rs2800, RSLs=Rs1800 GAP=Rs2800-RS1800=Rs1000
12/17/2009 Presenter: Dr. IKRAM 19
1
 Maturity Gap Analysis Option-2
Liabil Rate Increase Decreased Asset Rate Increase Decreased
ity % d Rate% (Crores) % d Rate%
(Crores) Rate% Rate%
200 200
1800* 10 11 9 800* 12 13 11
3000 11 11 11 1000 14 15 13
1000 16 17 15
2000 18 18 18
5000 5000
Int 510 528 492 Int 756 784 728
Expe income
nse
NII= 246 256 236

A case of Negative Gap:

RSAs= Rs800, RSLs=Rs1800 GAP=Rs800-Rs1800=(-)Rs1000
12/17/2009 Presenter: Dr. IKRAM 20
2
 Maturity Gap Analysis Option-3
Liabil Rate Increase Decreased Asset Rate Increase Decreased
ity % d Rate% (Crores) % d Rate%
(Crores) Rate% Rate%
200 200
1800* 10 11 9 800* 12 13 11
3000 11 11 11 1000* 14 15 13
1000 16 17 15
2000 18 18 18
5000 5000
Int 510 528 492 Int 756 784 728
Expe income
nse
NII= 246 256 236

A case of Zero Gap:

RSAs= Rs1800,
12/17/2009 Presenter: Dr. IKRAM RSLs=Rs1800 21
 Inferences from above options:
SCENARIO STRATEGY

Rising Interest Rates Maintain a positive gap

Declining Interest
Rates Maintain a Negative gap

Uncertain situation Maintain a Zero gap

(May not occur in reality)
No benefits

12/17/2009 Presenter: Dr. IKRAM 22

 Factors Affecting Net Interest Income: An Example

Consider the following balance sheet:

Ex p e cte d Ba la n ce S h e e t fo r Hyp o th e tica l Ba n k
Asse ts Yie ld L ia b ilitie s Co st
Rate sensitive $ 500 8.0% $ 600 4.0%
Fixed rate Non $ 350 11.0% $ 220 6.0%
earning $ 150 $ 100
$ 920
Equity
$ 80
To ta l $ 1,000 $ 1,000

NII = (0.08 x 500 + 0.11 x 350) - (0.04 x 600 + 0.06 x 220)

NII = 78.5 - 37.2 = 41.3
NIM = 41.3 / 850 = 4.86%
G AP = 500 - 600 = -100
12/17/2009 Presenter: Dr. IKRAM 23
 Factors Affecting Net Interest Income

Changes in the level of interest rates

Changes in the composition of assets and liabilities
Changes in the volume of earning assets and
interest-bearing liabilities outstanding
Changes in the relationship between the yields on
earning assets and rates paid on interest-bearing
liabilities

12/17/2009 Presenter:
Presenter:
D2
r.4Vighneswara
Dr. IKRAM 2
 Examine the impact of the following changes

A 1% increase in the level of all short-term

rates?
A 1% decrease in the spread between assets
yields and interest costs such that the rate
on RSAs increases to 8.5% and the rate on
RSLs increase to 5.5%?
Changes in the relationship between short-
term asset yields and liability costs
A proportionate doubling in size of the
bank?

12/17/2009 Presenter:
Presenter:
D2
r.5Vighneswara
Dr. IKRAM 2
 1% increase in short-term rates
Ex p e cte d Ba la n ce S h e e t fo r Hyp o th e tica l Ba n k
Asse ts Yie ld L ia b ilitie s Co st
Rate sensitive $ 500 9.0% $ 600 5.0%
Fixed rate Non $ 350 11.0% $ 220 6.0%
earning $ 150 $ 100
$ 920
Equity
$ 80
To ta l $ 1,000 $ 1,000

NII = (0.09 x 500 + 0.11 x 350) - (0.05 x 600 + 0.06 x 220)

NII = 83.5 - 43.2 = 40.3
NIM = 40.3 / 850 = 4.74%
G AP = 500 - 600 = -100
With a negative GAP, more liabilities than assets reprice higher; hence NII
and112/17/2009
N IM
2/1 fa
7/2009ll Presenter: Dr. IKRAM 26
2
 Maturity Gap Method Mathematical
Expressions

RSG = RSAs - RSLs 1

Gap Ratio = RSAs / RSLs 2

3
NII = Gap x r
Where,

NII = Change in Net Interest Income

r = Change in Interest Rates

NII = Earning Assets x NIM 4

12/17/2009 Presenter: Dr. IKRAM 27

2
 Maturity Gap Method Mathematical
Expressions ..

NII = Earning Assets x NIM x C

Where, C = % change in NIM
Since, NII = Gap x r
Gap x r = Earning Assets x NIM x C
Therefore,
Earning Assets x NIM x C
GAP = ----------------------------------------------- 5
r
Where; Earning Assets = Total Assets of the Bank
NIM = Net Interest Margin
C = Acceptable Change in NIM
12/17/200 r rePresenter:
=PE
Dr.
xsepnetecrt:eDdr. C
VighIKRAM
hannegsweairna Interest Rates
28
2
 Maturity Gap Method
Illustration
Bharat bank has earning assets worth Rs. 3000 crores and a
Net Interest Margin(NIM) of 3%. In a swift move Bharat Bank
decided that a 2% increase/decrease in the NIM can be the
acceptable limit. It further forecasts that a 0.75% increase in the
interest rate. Now you are required to calculate the target gap
which the bank can maintain to remain within the acceptable
limits of NII.
Answer:
Earning
GAP = Assets x NIM x C
------------------------------------------------------
r

3000 x 0.03 x 0.02 1.8

GAP = --------------------------------------------- = ----------- = Rs. 240 Crore
0.0075 0.0075

12/17/2009 Presenter: Dr. IKRAM 29

2
 Maturity Gap Method Mathematical
Expressions .. Gap Ratio

Consider the Following Illustration of two banks which have a same Gap
Ratio;
Parameters Bank A Bank B
RSA 2900 1005
RSL 2000 695
GAP 900 310
GAP Ratio 1.45 1.45
NII 830 390
Decrease in Interest 0.5 0.5
Change in NII (GAP * Change in R) 4.5 1.55
%change in NII (Change in NII /NII) 0.54% 0.40%

Inference: Gap level is more helpful than the Gap Ratio in taking
P/1o7s/2i0ti0o9ns
12
12/17/2009 Presenter: Dr. IKRAM 30
3
 Maturity Gap Method Mathematical
Expressions .. Rate Adjusted Gap

Rate Adjusted Gap = ( RSA1 * WA1 + RSA2 * WA2 + . )

- ( RSL1 * W1 + RSL2 * W2 + . ) 6
Where,
WA1 , WA2, . are Weights of the corresponding RSAs
WL1 , WL2, . are Weights of the corresponding RSLs
Illustration: The case of a Positive Gap turning Negative
Liability Rate% Weight Increased Assets Rate% Weight Increased
Rate% Rate%
200 200
1800 10 0.75 10.75 800 12 0.5 12.5
3000 11 11 1000 14 0.25 14.25
1000 16 0.5 16.5
2000 18 18

Rate Adjusted Liabilities = 1800 x 0.75 = 1350

Rate Adjusted Assets = [(800 x 0.5) + (1000 x 0.25) + (1000 x 0.5)] = 1150
Rate adjusted Gap = 1150 1350 = (-) 200
12/17/2009
1In
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2n00c9e: By assigning weighPtrsestehneteP
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Presenter: ivigehn
Dr. Geasw
IKRAMpahraas actually become Negative 31 3
 Statement Of
Interest Rate Sensitivity

Generated by grouping RSA,RSL & OFF-

Balance sheet items in to various (8)time
buckets.
RSA:
MONEY AT CALL
ADVANCES ( BPLR LINKED )
INVESTMENT
RSL:
DEPOSITS EXCLUDING CD
BORROWINGS
12/17/2009 Presenter: Dr. IKRAM 32
 Balance Sheet looked at from Interest Rates:

Balance Sheet looked at from Interest Rates:

Balance Sheet Items Whether Interest Fixed / Floating Remarks
bearing Rate
Liabilities
Capital No
Reserves & Surplus No
Deposits
- Current Deposits No
- Savings Deposits Yes Fixed
- Term Deposits Yes Fixed Discretionary pricing for High
Value deposits & Inter bank
items
Borrowings
- From within India Yes Fixed
- From Outside India Yes Generally Fixed Sometimes, floating, linked to
LIBOR
Other Liabilities
- Interest Payable Yes Fixed
- Subordinated Debts Yes Fixed In a few cases, this is floating
rate item
- Others NO
12/17/2009 Presenter: Dr. IKRAM 33
 IRS & Interest Rate Scenario

of Interest Rate Changes

on NII
Rising Stable Falling
Interest Interest Interest
Rate Rate Rate
Scenario Scenari Scenario
o

e Mis Adver No Favour

Matches in IRS se Impac able
12/17/2009 Presenter: Dr. IKRAM 34
 Limitations of Maturity Gap
Analysis
To a larger extent depends on the
accuracy level of the forecasts made
regarding the quantum and the direction
of the interest rate changes

While gap measurement is easy, gap

management is quite difficult.
It assumes that change in interest rates
immediately affects all RSAs and RSLs

Ignores Time Value

of
Money

12/17/2009 Presenter: Dr. IKRAM 35

 Duration Gap Analysis

Duration Gap Analysis What is it?

Duration
Analysis: Duration
Duration
Duration is a Analysis:
Analysis:
measure of the It concentrates
It also measures
percentage on the price risk
the effect of rate
change in the and the
fluctuation on
economic value reinvestment
the market value
of a position that risk while
of the assets and
occurs given a managing the
liabilities and
small change in interest rate
NIM with the help
level of interest exposure.
of duration.
rate.

12/17/2009 Presenter: Dr. IKRAM 36

 Duration Gap Analysis ..Illustration

Assets and Liabilities chart of Bharath Bank is presented here below

along with their durations and interest rates. Based on the information, identify
the RSG and the NIM. During the forecasting period of one year, if the
interest rates rise/fall by 2%, what would be its implication on the NIM of
Bharath Bank?
Liabiliti Amount Duration Int. Rate Assets Amount Duration Int. Rate
es (Crore) (months) (%) (Crore) (months) (%)
Equity 200 Cash 200
ST 1800 5.5 11.5 ST 1800 2.75 12.5
Depo Loans
LT 2500 23.7 15 LT 2000 23 16.5
Depo Loans
Others 500 11.5 11 Invest 1000 10.5 13.5
ments
5000 5000
12/17/2009 Presenter: Dr. IKRAM 37
 Duration Gap Analysis
Answer:
RSG = RSAs RSLs = (1800+1000) (1800+500) = 500

Liabi Amount Duration Interest Increased Decreased Assets Amount Duratio Interest Increased Decreased
lities n
(crore) in Mnths Rate(%) Int. Int. (crore) in Rate(%) Int. Int.
Rate(%) Rate(%) Mnths Rate(%) Rate(%)
Equity 200 Cash 200
ST 1800 5.5 11.5 13.5 9.5 ST 1800 2.75 12.5 14.5 10.5
Depos Loans
LT 2500 23.7 15 15 15 LT 2000 23 16.5 16.5 16.5
Depos Loans
Others 500 11.5 11 13 9 Investm 1000 10.5 13.5 15.5 11.5
5000 5000
Int. 637 683 591 Int 690 746 634
Expe Income
NII 53 63 43
NIM 0.010 0.0126 0.0086
6
12/17/2009 Presenter: Dr. IKRAM 38
 Duration Gap Analysis
Using the Duration analysis to assess the sensitivity of
the market value of Assets and Liabilities.
Ds x S = ( D x A ) - ( D L x L ) 7
Where,
Ds = Duration Gap / Duration of Surplus
DA = Duration of Assets, DL = Duration of
Liabilities A = Assets L = Liabilities
S = Surplus / Gap

12/17/2009 Presenter: Dr. IKRAM 39

 Duration Gap Analysis .
Substituting L = A S in the above eqn. We get
Ds = DL + ( A / S ) x ( DA - DL ) 8
When there is a market fluctuation,
-D( r) x Current MV MV = --
---------------------------------------- 9
(1+r)
Where, MV = Change in the market value D
= Duration of assets or liabilities
r = Change in the interest rate
r = Current interest rate
MV = Market Value
Then,

New MV = Current MV + MV 9

12/17/2009 Presenter: Dr. IKRAM 40

4
 Duration Gap Analysis ..
Then, -D( r) x Current MV
MV = -----------------------------------
(1+r)
An Example:
The following is the information about Bharath Bank. Market
value of liabilities is Rs1800 crores, MV of Assets is Rs2000
Crores, Duration of Assets is 5 years, Duration of Liabilities is 4
years, the ROI is 10% and Change in the ROI is +2%. You are required
to asses the change in the MV of the bank whose Equity is currently
Rs200 crore.
Answer:
Parameter Change in MV Original MV New MV Assets
-5(0.02) x2000 182 2000 1818
(1+0.1)
Liabilities -4(0.02) x1800 131 1800 1669
(1+0.1)
Equity 182 131 51 200 149
12/17/2009 Presenter: Dr. IKRAM 41
 Simulation

What is it? Data Requirement

Simulates performance
under alternative Maturity and repricing
interest rate Rate scenarios Alternative
scenarios and management response
assesses the resulting
under different scenarios
volatility in NII / NIM
A / ROE / MVEmodel
financial
/ ROA Yield curves
incorporating inter- Prepayment tables
relationship of assets, Behavioural pattern of
liabilities, prices, costs, assets and liabilities
volume, mix and other Consistency of
business related variables assumptions
Computer generated
scenarios about future and
response to that in a dynamic
way
12/17/2009 Presenter: Dr. IKRAM 42
 Simulation- other information

Risk-Return policies - management appetite for risk

taking
Regulatory framework Ward against practices which
are considered unsafe and unsound
Capital strength and profitability
Experience and track record of management
Other risks embedded in the balance sheet - Liquidity /
Credit / Forex risks
Business plan

12/17/2009 Presenter: Dr. IKRAM 43

 Simulation

-Advantages -Disadvantages
Forward looking
Accuracy depends on quality
Dynamic of data, strength of the model
and validity of assumptions
Lessens the role of crisis
management Time consuming
Increases the value of
Huge investment in computer
strategic planning
Requires highly skilled
Enhances capability of analysis
Personnel
Interpretation easy
Analysis paralysis
Timing of cash flows captured
accurately

12/17/2009 Presenter: Dr. IKRAM 44

 Interest Rate Risk Management

12/17/2009 Presenter: Dr. IKRAM 45

 Interest Rate Risk Management

INTEREST RATE RISK MODELS

Risk Measurement Systems
GAP EARNINGS ECONOMIC VALUATION REPORT
SIMULATION
Short-Term Yes term
Earnings in
Exposure
Long-term Limited*
Exposure
Repricing Risk Yes

Basis Risk Yes

Yield Curve Yes

Risk
Option Risk Limited*

* The ability of these types of models to capture this type of risk will vary with the
so12/17/2009
1p2/h1i7s/2ti0c0a9tion of the model aPnDr.
Presenter: rdese thnteer:mDra. nVingehnresinwarwahich4
IKRAM
 Benefits from IRR management

Defined financial targets based on corporate risk

tolerances

Reduced earnings volatility

Improved cash flow forecasting

Improved corporate credit ratings

Defined risk management and hedge methodologies

12/17/2009 Presenter: Dr. IKRAM 47

 Conclusion

Based on the quantity of interest rate risk

and quality of interest rate risk management,
we can evaluate the adequacy of the banks
capital.

Determine the component rating for

sensitivity to market risk.

Determine further the effect of interest rate

and earnings on the business in a
macroscopic view.
12/17/2009 Presenter: Dr. IKRAM 48
 Save Environment Save Earth

12/17/2009 Presenter: Dr. IKRAM 4