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What type of risk bank is facing?

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  • What type of risk bank is facing?

    S&K Saving Bank is a medium size bank and operating locally. It provides different financial services to individuals and businesses. In January 2011, S&K Saving Bank has issued saving certificate (certificate of deposits) for Rs. 1,000 with one year maturity at 4% interest rate. In next year bank will reissue the certificate of deposits; on reissuance interest rate on these may vary due to change in inflation rate and monitory policy. With the borrowed money the bank has purchased treasury...

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    The bank faces interest rate risk. In the case of borrowing from the depositor, it faces the risk that...

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