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To help mitigate global interest rate risk, banks and other depository institutions must have a system...

To help mitigate global interest rate risk, banks and other depository institutions must have a system in place that can measure this risk and let them know what effects a change in interest rate may have on them (Saunders & Million Cornett, 2014). A system like this can help control exposure to this kind of risk by identifying what exposures may occur. What does everyone think about this statement? Do you agree or disagree? Anyone??

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It is very important for a bank or other financial institution to aware the changes in the interest rate in future. Because every financial institution is dealing with interest rate, bank have to pay interest for customers investment and also banks have to collection interest for loan taken by customers.

If any drastic change in the interest rate, it is a risk for banks, it will effect the bank very badly. so to help interest rate risk, banks and other depository institutions must have a system in place that can measure this risk. It will help to understand what changes in interest rate will effect their business. So that they can control this risk without effecting their business.

So I agree with the statement "To help mitigate global interest rate risk, banks and other depository institutions must have system in place that can measure this risk and let them know what effects a change in interest rate may have on them "

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