Year: 2001
Author: Wahl, Jack, Broll, Udo
Credit and Capital Markets – Kredit und Kapital, Vol. 34 (2001), Iss. 4 : pp. 579–589
Abstract
Banking and the Advantage of Hedging
We investigate how a competitive banking firm uses contractual arrangements like a variable rate of deposits to insure against profit risk from investments in risky assets and how the expected utility of the bank manager is affected by such risk management policy. Furthermore, we discuss the advantage of risk policy based on financial hedging in futures markets. We answer the question which of these risk management policies the bank manager will prefer.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.34.4.579
Credit and Capital Markets – Kredit und Kapital, Vol. 34 (2001), Iss. 4 : pp. 579–589
Published online: 2001-04
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 11
Author Details
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