However, to make such a prediction is difficult

For example, the amount of funds depends not only on the bank and not always amenable to prediction. In this case, use the risk ratio, calculated as the ratio of cumulative gepu capital of the bank. As you know, the bank's capital is a more stable value than workers assets. In addition, since the gap - an indicator of interest rate risk of the bank, and all risks should be recovered from its own funds, it is logical to compare it with the capital gap. MCT - coefficient of interest rate risk, and K - bank's own capital. Expected interest rate risk in monetary terms as the expected change in profits? P from changes in interest rates expressed in terms of cumulative R gap as follows: If the period for which the calculated gap, interest rates increase, a positive gap would lead to the expected increase in interest income. If rates go down, then the negative gap would increase the expected profits. The real change came the expected answer, if changes occur in the anticipated direction and scale. The main idea management gap is that the quantity and type (positive or negative) gepu must meet forecast changes in interest rates. Gap control rule: if the gap is positive, with growth rates of the bank margin will increase, and conversely, if they reduce the margin to decline, and if the gap is negative, as interest rates bank margins will decrease, and with their decline - to increase. Category: Management Operations Commercial Bank | Tags: forecast