Banking system at risk: Interest rate fluctuations threaten financial stability.
The article explores how banks manage the risk of changing interest rates. It shows that interest rate fluctuations can greatly affect a bank's financial health, especially in lending and deposit activities. By analyzing reserves and financial instruments, the study found that banks are sensitive to interest rate changes. To prevent risks, banks use methods like setting limits, diversifying investments, and improving information security. The research also highlights the importance of internal controls and public opinion in managing interest rate risk.