News

citefactor-journal-indexing

The Effect of Interest Rate Risk on the Stock Prices of UK Financial Institutions

Abstract: There is vast research on the effect of interest rate risk on the US stock returns of financial institutions; however, there has been limited research on British bank stock returns and interest rate sensitivity. The aim of this paper is to investigate the effect of interest rate risk on the stock prices of UK financial institutions and the effect interest rate risk has on policy makers. This paper considers 8 (eight) UK financial institutions between the years 1997-2014. The methodology uses the Stone’s Two Index Model to test for the significance of such risk. The results found several structural breaks in the data; however there still remains a strong correlation between stock price returns and interest rate risk, particularly those involved in sub-prime mortgage operations. The evidence shows that interest rate risk has a significant impact on the stock prices returns through monetary policy transmission. It also indicates that interest rate risk affects the decisions of policymakers at the strategic level.



Real Time Impact Factor: Pending

Author Name:

URL: View PDF

Keywords: Interest Rate Risk, Stock Prices, Monetary Transmission Mechanism, Credit Channel, Balance Sheet Channel, Stone’s Two Index Model.

ISSN: 2056-9122

EISSN: 2056-9130


EOI/DOI:


Add Citation Views: 3458














Search


Advance Search

Get Eoi for your journal/conference/thesis paper.

Note: Get EOI for Journal/Conference/ Thesis paper.
(contact: eoi@citefactor.org).

citefactor-paper-indexing

Share With Us












Directory Indexing of International Research Journals
SLOT GACOR DANAMendadak Viral Setelah Dapat Scatter BerlianPemuda Klaten Dapat Scatter SultanAuto Tajir Usai Dapat Scatter LegendarisRecehan Goceng Masih LakuScatter Nasional Muncul LagiSoto Betawi Juara Versi Warga DepokPenghasilan Fantastis dari Mahjong Wins 3 WTOBETMain Mahjong Ways WTOBET Tengah MalamGates of Olympus WTOBET Nggak Main-MainRatu Maxwin WTOBET dari PematangsiantarModal Spin Receh Langsung Profit Mahjong Ways Ala Dapur Tradisional Perkalian Menggelegar Olympus 1000 Sambaran Kemenangan Starlight Princess Kembali Lagi Cuan Tetap Aman Di Mahjong Wins