The Value of Using Interest Rate Derivatives to Manage Risk at U.S. Banking Organizations

Posted: 21 Jun 2006

See all articles by Elijah Brewer

Elijah Brewer

DePaul University - Department of Finance; Federal Reserve Bank of Chicago

William E. Jackson

Culverhouse College of Business, University of Alabama

James T. Moser

American University - Kogod School of Business

Abstract

This article examines the major differences in the financial characteristics of banking organizations that use derivatives relative to those that do not. We find that derivatives usage appears to foster greater business lending and hold lower levels of costly capital.

Keywords: derivatives, bank

Suggested Citation

Brewer, Elijah and Jackson, William E. and Moser, James T., The Value of Using Interest Rate Derivatives to Manage Risk at U.S. Banking Organizations. Economic Perspectives, 3rd Quarter, 2001. Available at SSRN: https://ssrn.com/abstract=910277

Elijah Brewer

DePaul University - Department of Finance ( email )

1 East Jackson Blvd.
Chicago, IL 60604-2287
United States

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

William E. Jackson

Culverhouse College of Business, University of Alabama ( email )

Tuscaloosa, AL 35487-0225
United States
205.348.6217 (Phone)
205.348.6695 (Fax)

James T. Moser (Contact Author)

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
580
PlumX Metrics