UTICAJ KAMATNOG RIZIKA NA BANKARSKO POSLOVANJE
THE INFLUENCE OF INTEREST RATE RISK ON THE BANKING BUSINESS

Summary/Abstract: Immanent part of the banking business is interest rate risk, whose presence significantly affects on the business performance of the bank. The current conditions of crisis and instability in the market are best manifested through exactly this kind of banking risks. Given that the banks can not eliminate its presence, its commercial success depends significantly on the ability of their management to detect interest rate trends and potential sources of interest rate risk, and to build effective mechanisms of protection against risks. The aim of this paper is to introduce ways of expression of this risk, as well as the methods used in modern banking to reduce the negative consequences of the existence of this risk to the bank.

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