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Studies from HEC Paris Update Current Data on Management Science (Bank Interest Rate Risk Management)
Researchers detail new data in Science - Management Science. According to news reporting originating from Jouy-en-Josas, France, by NewsRx editors, the research stated, “Empirically, bank equity value is decreasing in the interest rate. Yet (i) many banks do not hedge interest rate risk, and (ii) more than 50% of hedging banks use derivatives to increase exposure.”