Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria

The banking system is affected by uncertainties related to the evolution of pandemic. One of the identified risks is that of a fluctuation of rates. Volatility of Interest rates is one of the major risks for the banking system. Therefore, financial engineering can be used as a very important hedging...

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Autores principales:	Akhmedov Fakhraddin N., Zeitoun Mhd Shaker, Al Humssi Ahmad
Formato:	article
Lenguaje:	EN SR
Publicado:	Faculty of Business and Entrepreneurship, Belgrade 2021
Materias:	stress conditions hedging interest rate risk serivatives interest rate swaps financial engineering banks in syria Business HF5001-6182
Acceso en línea:	https://doaj.org/article/d487abf96d49430db6f6f8dda6c65951
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spelling	oai:doaj.org-article:d487abf96d49430db6f6f8dda6c659512021-12-05T21:06:25ZFinancial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria2217-97392560-335310.5937/intrev2102101Ahttps://doaj.org/article/d487abf96d49430db6f6f8dda6c659512021-01-01T00:00:00Zhttps://scindeks-clanci.ceon.rs/data/pdf/2217-9739/2021/2217-97392101099A.pdfhttps://doaj.org/toc/2217-9739https://doaj.org/toc/2560-3353The banking system is affected by uncertainties related to the evolution of pandemic. One of the identified risks is that of a fluctuation of rates. Volatility of Interest rates is one of the major risks for the banking system. Therefore, financial engineering can be used as a very important hedging practice for banks against such a risk. The aim of this study is to develop a risk hedging mechanism to better overcome market volatility by hedging position against the exposure to interest rate risk based on credit derivatives. Therefore, this study uses Interest Rate Swaps (IRS)s to better hedge the exposure of banks to interest rate fluctuations in stress conditions giving consideration to the case study of banks in Syria in optimizing hedging practices based on Interest Rate Swaps. The aim is to use financial engineering to provide banks with a hedging technique to better absorb shocks in times of stress conditions. This has been discussed and illustrated with visual model diagrams. The case study of banks in Syria is not just the story of individual banks but a window into how to hedge the exposure of banks in stress conditions. In the end, most banking crises are quite similar. The recommendations set out in this study provide banks with an optimized hedging practice which is not part of current financial engineering at banks in Syria.Akhmedov Fakhraddin N.Zeitoun Mhd ShakerAl Humssi AhmadFaculty of Business and Entrepreneurship, Belgradearticlestress conditionshedginginterest rate riskserivativesinterest rate swapsfinancial engineeringbanks in syriaBusinessHF5001-6182ENSRInternational Review, Vol 2021, Iss 1-2, Pp 99-107 (2021)
institution	DOAJ
collection	DOAJ
language	EN SR
topic	stress conditions hedging interest rate risk serivatives interest rate swaps financial engineering banks in syria Business HF5001-6182
spellingShingle	stress conditions hedging interest rate risk serivatives interest rate swaps financial engineering banks in syria Business HF5001-6182 Akhmedov Fakhraddin N. Zeitoun Mhd Shaker Al Humssi Ahmad Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria
description	The banking system is affected by uncertainties related to the evolution of pandemic. One of the identified risks is that of a fluctuation of rates. Volatility of Interest rates is one of the major risks for the banking system. Therefore, financial engineering can be used as a very important hedging practice for banks against such a risk. The aim of this study is to develop a risk hedging mechanism to better overcome market volatility by hedging position against the exposure to interest rate risk based on credit derivatives. Therefore, this study uses Interest Rate Swaps (IRS)s to better hedge the exposure of banks to interest rate fluctuations in stress conditions giving consideration to the case study of banks in Syria in optimizing hedging practices based on Interest Rate Swaps. The aim is to use financial engineering to provide banks with a hedging technique to better absorb shocks in times of stress conditions. This has been discussed and illustrated with visual model diagrams. The case study of banks in Syria is not just the story of individual banks but a window into how to hedge the exposure of banks in stress conditions. In the end, most banking crises are quite similar. The recommendations set out in this study provide banks with an optimized hedging practice which is not part of current financial engineering at banks in Syria.
format	article
author	Akhmedov Fakhraddin N. Zeitoun Mhd Shaker Al Humssi Ahmad
author_facet	Akhmedov Fakhraddin N. Zeitoun Mhd Shaker Al Humssi Ahmad
author_sort	Akhmedov Fakhraddin N.
title	Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria
title_short	Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria
title_full	Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria
title_fullStr	Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria
title_full_unstemmed	Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria
title_sort	financial engineering to optimize risk management in banks based on interest rate swaps to better hedge the exposure to interest rate fluctuations the case of banks in syria
publisher	Faculty of Business and Entrepreneurship, Belgrade
publishDate	2021
url	https://doaj.org/article/d487abf96d49430db6f6f8dda6c65951
work_keys_str_mv	AT akhmedovfakhraddinn financialengineeringtooptimizeriskmanagementinbanksbasedoninterestrateswapstobetterhedgetheexposuretointerestratefluctuationsthecaseofbanksinsyria AT zeitounmhdshaker financialengineeringtooptimizeriskmanagementinbanksbasedoninterestrateswapstobetterhedgetheexposuretointerestratefluctuationsthecaseofbanksinsyria AT alhumssiahmad financialengineeringtooptimizeriskmanagementinbanksbasedoninterestrateswapstobetterhedgetheexposuretointerestratefluctuationsthecaseofbanksinsyria
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Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria

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