Assignment: impact of low interest rates on financial institutions
Interest rates have been near historically low levels for an extended period of time in advanced economies. From a monetary perspective, low interest rates reflect the current low growth and inflation environment. Next to their impact on the economy, interest rate levels and possible changes in interest rates also have a profound impact on financial institutions. The level of interest rates affects the valuation of assets and liabilities, and thereby net worth. Interest rates also affect profitability, as they influence funding costs and returns on financial assets. Moreover, interest rate risk is a key risk that risk managers take into account. The effect of low interest rates may differ for different financial institutions, ...view middle of the document...
g. risk management and/or business strategy). The first section of your report should discuss the expected effects of low interest rates on the type of financial institution that you have selected (based on theory) The second part should analyse the effect based on concrete publically available data for the institution that you have selected (e.g. in balance sheet data in financial statements)
Format assignment: - 12-15 pages A4 (excluding title page and references); 15 pages is a strict maxi-mum. - line spacing: 1 - Title page with: Title / subtitle; Name contributors and student numbers; Date; File name: year, name course, group number and name of financial institution Header/footer on pages with group number and name of financial institution - Page numbers, references etc. - One page management summary - Clear problem formulation, conclusions and recommendations - Use in uploading file names in the format of: 1415aFBI(name financial institu-tion) Info assignment: Character report: (Academic) consultancy report Hand-in date: Thursday-sessions on the previous Monday, 17.00 hours – September 29 Presentation: Available per assignment: 25 minutes split up in: a 10-minutes presentation of the research by 1 student, followed by a 15-minutes discussion. The discussion will be opened by fellow-colleagues from the other assignment groups. Presentation and critiques are taking into account for grading. In one group session 4 assignment teams are planned. Hand in: 2 hard copies on 3A-15 (secretariat) in the physical mailbox of Dr. Wierts (or in the green mailbox outside 3A-15 in case the secretariat is closed) + electronic version in Blackboard.
Hand in final version assignments, 17.00 hrs at 3A-15 (secretariat), in the physical mailbox of Wierts (or in the green mailbox outside 3A-15 in case the secretariat is closed) – October 24, 2014