The use of financial engineering products in managing interest rate risk "National Bank of Algeria as a model"
Keywords:
Financial engineering products, Interest rate risk, Risk Management, Interest Rate SwapsAbstract
Financial risk management is the practice of protecting the economic value of a company by using financial engineering tools to manage exposure to risks such as operational risks, credit risks, market risks, foreign exchange risks, and interest rate risks. This article seeks to highlight one of the most common types of financial risks in financial markets, which is interest rate risk, and how to manage it using the tools provided by financial engineering. These tools enable those responsible for managing these risks to propose appropriate solutions and devise alternative plans that ensure a balance between financial assets and liabilities, thus helping banking institutions avoid financial failure and manage their assets and deposits in a flexible and rational manner.
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