Impact Of Low Interest Rates On Financial Institutions

522 words - 3 pages

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

Other Essays Like Impact of Low Interest Rates on Financial Institutions

Effect of Interest Rate and Cash Reserve Ration on Inflation

2516 words - 11 pages only on interest rate but should also move towards other measures like CRR , open market operation .we can see that our Asian economies like india Bangladesh and srilanka are using CRR as a strong measure to control inflation. Government of Pakistan should fluctuate its interest rates according to its market needs rather than being dictated by the international financial agencies. Increasing the interest rate to 13.5 % in 2009 was not a fair

Critically Assess The Impact Of The Financial Serv

2097 words - 9 pages confidence. And fourthly, the regulations should provide a guide and not cramp structural and other changes in the industry.¡¨ The Financial Services Act 1986 created a new method of regulation. What it did was to design a two-tier regulatory system based on the assumption that to conduct investment business, a person or organisation will have to be authorised. The authorisation came automatically if she is a member of a recognised self

Impact of Monopolies on Communities

2267 words - 10 pages refusal to increase wages for its low earning employees can IS WALMART’S IMPACT ON COMMUNITIES GOOD OR BAD? be argued that Walmart’s low price strategy is good for low income earners but is not good for the economy as this strategy forces competing stores to shut down. The fact that Walmart has the ability to force most of its competitors out of business within a couple of months of it setting shop in communities is not good as this

Impact of Technology on Production.Doc

1582 words - 7 pages What is Technology? Technology is not just about computers and latest gadgets. Technology is the practical application of science to improve human life. Technology is important because we depend on so many assets; basic tools, irrigation, medical advancements, and that is to say nothing of the convenience of modern-day. Technology is the development of new skills, approaches and techniques which make something easier to do in a more

'Rule By Institutions' is the name of the essay and its an essay on institutions that the directors in Aldous Huxley's 'Brave New World' used to control citiznes

562 words - 3 pages that helps the clones to forget about their troubles and emotions. In the novel, every time Bernard Marx becomes emotional someone tries to persuade him to use soma, but he refuses to almost always (54-55). On the other extreme, Linda, John Savage's mother, wants to forget about her time in the reservation so badly that she overdoses on soma (206). By realizing the advantages of the structural institutions of the old world, the directors

Summary of “Effect of Chronic Low Level Manganese Exposure on Postural Balance”

536 words - 3 pages Summary of “Effect of Chronic Low Level Manganese Exposure on Postural Balance” A study was conducted on residents in Marietta, Ohio; home to the only ferromanganese alloy refinery is located, to determine the effect of non-occupational exposure to manganese (Mn). Manganese is a chemical element naturally found in nature and is required in small amounts for the human body. Inhaling excessive amounts of manganese can lead to symptoms that

Impact of Western Culture on Pakistani Society

1002 words - 5 pages The Impact of Western culture on Pakistani culture has had both positive and negative effects on Pakistani society, though the negative effects outweigh the positive ones by quite a margin. Provision of Human Rights: The first and the most prominent is the Freedom of Press, Freedom of Speech and Freedom of Action. These fundamental rights have mostly been secured through excessive Western influence. Whether it be through an indirect

Impact of Healthy Work Environment on Nurses

1813 words - 8 pages Impact of healthy work environment on retention of nurses Abstract Registered nurses are the largest number of health-care professionals in United States. However, nurses are leaving their job and profession at an alarming rate. Attraction and retention of nurses is critical to the effective function of healthcare facility. Retention of nurses is essential to maintain an adequate supply of nurses, and at the organizational level

The Impact of Globalisation on Multinational Companies

3257 words - 14 pages The other thing to take care of the most modern commercial society. Create a positive image in the minds of consumers social responsibility. McDonald `s in the public interest. Participate in community events, charity gala, many, financial support and other features of a large number of local McDonald's sponsors. McDonald's McDonald's is also on the work of local residents, provides equal opportunity to all employers. It was administering

Negative Impact Of Humans On The Environment

1694 words - 7 pages The Impact of Humans on the Environment The human population on the planet now tallies in at over 6 billion. Many experts believe this population may double in the next half-century, as expressed in A Special Moment in History by Bill McKibben. Humans are undoubtedly the 'rulers' of this earth, but we have not been good rulers. In fact in our years of monumental growth as a species, our relationship to our kingdom, the

Ecological Impact of International Business on China

1664 words - 7 pages Ecological impact of international business on China In the last decade, China has undergone veritable economic expansion, but with great cost to its environment. Unregulated production and pollution have resulted in the existence of over 400 cancer villages in China, concentrated around areas of high economic development (Florcruz, 2013). According to the Chinese media, cancer villages are defined as villages where the number of cancer

Related Papers

Impact Of A Sharp Rise In Interest Rates On Households

1030 words - 5 pages bearing accounts. A rise in interest rates would have a significant impact on household spending. High interest rates are likely to affect: 1. The cost of repaying existing debt 2. The cost of obtaining new credit 3. The decision to save. 4. Consumers expectations and confidence. 1)The cost of repaying existing debt: The rate of interest varies when the Bank of England changes base rates. This is especially true for variable rate

Experiment On Rates Of Reaction Essay

780 words - 4 pages Experiment on Rates of Reaction Rates Of Reaction: The time taken for a reaction to take place. The speed of the reaction has a big effect on the time, e.g. time taken for concrete to set may take hours, days or even weeks. Factors: Temperature: The temperatures during the rates of reactions are important because they can change how quick the reaction takes place. · Increasing the temperature will cause the

The Impact Of The Global Financial Crisis On Economic Growth

3967 words - 16 pages Economic growth The impact of the Global Financial Crisis on economic growth As a result of the global recession, Australia’s GDP was forecasted to contract by 0.5% in 2009-10 in comparison to other advanced economies which were expected to contract by 3.75% in the same year. However minor the reductions in GDP, it was evident that Australia was not exempt from the global recession although is better placed and is expected to perform better

Impact Of Global Financial Crisis On Air Transport

1976 words - 8 pages Final Project Part One: Impact of Global Financial Crisis on Air Transport in the U.S Embry-Riddle Aeronautical University MBAA 522 – Business Research Methods For: Dr. Barry Bauer March 15, 2015 Introduction This research paper examines the origins of the 2008/2009 world financial crisis and the impact that the crisis had on air transport in the United States of America. Although the crisis originated in the economies of North