Interest rate transformation: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create the page. Sources: linked pages.) |
imported>Doug Williamson (Update links.) |
||
| (2 intermediate revisions by the same user not shown) | |||
| Line 7: | Line 7: | ||
* [[Bank]] | * [[Bank]] | ||
* [[Basis]] | * [[Basis]] | ||
* [[Collateral transformation]] | |||
* [[Fixed rate]] | * [[Fixed rate]] | ||
* [[Floating rate]] | * [[Floating rate]] | ||
* [[Maturity transformation]] | * [[Maturity transformation]] | ||
*[[Transformation]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Liquidity_management]] | |||
Latest revision as of 08:28, 28 September 2022
Interest rate transformation is the essential economic function of banks and other intermediaries, which enables both borrowers and investors to meet their differing preferences in relation to interest rates.
For example, a bank take deposits on a floating interest rate basis, and lend funds to a borrower on a fixed rate basis.
