Home  Journals  Finance and Credit  41(377) - 2009 November

The model of the financial company interest rate risk management by using transfer pricing system

Available online: 25 November 2009

Subject Heading: Management of risks

JEL Classification: 

Crisis of a modern financial system reveals considerable shortcomings of a risks control system. Interest rate risk management in financial companies becomes more urgent due to the instability of market indicators. In the present work by means of economic-mathematical methods some aspects of percentage risk are analyzed and the model of interest rate risk management, based on creation the transfer pricing system in firm is offered. It is concluded that transfer pricing allows to exercise the centralised administration of interest rate risk. That appeared to be the most effective way of the internal company organization in the conditions of increasing financial companies susceptibility to this type of risk.

Keywords: interest rate risk, risk management, transfer pricing system

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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