+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Influence of changes of a rate on federal funds on level of percentage risk of banks

Vol. 18, Iss. 23, JUNE 2012

Available online: 22 June 2012

Subject Heading: Banking

JEL Classification: 

Sokolov B.I. Doctor of Economics, Professor of department "Theory of Credit and Financial Management", the St. Petersburg State University
bisokolov@yandex.ru

Sokolova Y.Y. Graduate student of department "Theory of Credit and Financial Management", The St. Petersburg State University
spb.yana@gmail.com

In the article the assessment is given to events in the USA preceding a mortgage meltdown of 2007. By means of the graphic analysis the evidence of is produced that entry of a financial system into crisis was in many respects provoked by policy of a targeting of a rate on federal funds. The Federal Reserve System (FRS) actively carried out operations in the open market, causing considerable fluctuations of rates. The conclusion that result was the essential increase in percentage risk of the credit organizations is drawn. Threat of decrease in profit forced banks to look for additional sources of the income, leading up thus all types of risks to critical values.

Keywords: Federal Reserve System, federal funds rate, interest rate targeting, interest rate risk, open market operations, financial crisis

View all articles of issue

 

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

Journal current issue

Vol. 30, Iss. 3
March 2024

Archive