INFLUENCE OF INTEREST RISK ON THE ACTIVITIES OF COMMERCIAL BANKS: SCIENTIFIC AND THEORETICAL FOUNDATIONS AND PRACTICAL ANALYSIS.
Abstract
Interest rate risk is one of the most pressing challenges faced by commercial banks today due to the fluctuating nature of financial markets, changing monetary policies, and economic uncertainties. As financial intermediaries, commercial banks are directly impacted by interest rate movements, which influence their core operations such as lending, borrowing, investing, and the management of financial products. The profitability and financial stability of commercial banks depend significantly on their ability to effectively manage this risk. If not properly managed, interest rate risk can lead to significant financial losses, reduced earnings, and even jeopardize a bank’s solvency.
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