Abstract:
Risk management is a key task for effective bank management. Feature of banking risks management is that any decisions made express subjective character. Therefore in order to reduce to a minimum a possibility of a management mistake, it is necessary for the person taking decisions to have correct and full knowledge about sources of risks occurrence, and knowledge of the basic interrelations between characteristics of bank’s activity and a condition of the external economic environment. This concerns all types of banking risks. One of risks to which is constantly exposed any modern bank, alongside with credit risk and risk of liquidity, is the interest rate risk. Management of the last represents one of the strategic directions of any bank. Quite often bank’s entire existence depends on its skill to manage interest rate risk – even if it doesn’t have any problems with return of the credits (commercial and inter-bank credits), which is quite unlikely. The purpose of work is the development of recommendations for "Uralvneshtorgbank" on perfection of interest rate risk management, namely on delimitation and conditions of applicability of interest rate risk techniques in commercial bank.
