Interest rate transformation: Difference between revisions
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imported>Doug Williamson (Create the page. Sources: linked pages.) |
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* [[Maturity transformation]] | * [[Maturity transformation]] | ||
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[[Category:Investment]] | |||
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[[Category:Identify_and_assess_risks]] | |||
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[[Category:Risk_frameworks]] | |||
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[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
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Revision as of 22:33, 26 February 2020
Interest rate transformation is the essential economic function of banks and other intermediaries, which enables both borrowers and investors to meet their differing preferences in relation to interest rates.
For example, a bank take deposits on a floating interest rate basis, and lend funds to a borrower on a fixed rate basis.
