9-41 Attempts to satisfy the objectives of shareholders and regulators requires the bank to use the same duration match in the protection of net worth from interest rate risk.

Question

Quizplus · Accepted Answer

Banks may use different strategies to satisfy shareholders and regulators, and they are not required to use the same duration match for protecting net worth from interest rate risk. Different stakeholders may have different objectives and risk tolerances.

9-41 Attempts to Satisfy the Objectives of Shareholders and Regulators