Recruitment and Selection Process of National Bank Limited

Abstract

Interest income is the primary source of revenue for commercial banks in Bangladesh. Interest rate risk measurement and management is not a simple issue for commercial banks owing to the uncertainty surrounding the behavior of core deposits and the options contained in their whole balance sheets. The unfavorable fluctuation of interest rates may increase borrowing costs, reduce investor returns, reduce bank profitability, and reduce banks' net present value. Interest rate’s variation affects the bank's revenue by affecting net interest income as well as other interest-sensitive income and operational expenditures. Bangladesh's commercial banks are particularly vulnerable to interest rate risk. It has a detrimental effect on the banks' profitability as well as their net worth. As a result, it discourages investors from making more investments. As a result, economic development is harmed. Bangladesh Bank establishes guidelines and numerous norms and regulations for evaluating and minimizing commercial banks' interest rate risk. There have some methods to mitigate the interest rate risk like Interest Sensitive (IS) Gap analysis, Duration analysis, Simulation Model, etc. Throughout this research, I've attempted to find out the different factors that affect interest rate risk and interest rate risk management strategies adopted by the commercial banks in Bangladesh. The required data has been collected from different sources and here both primary and secondary method has been used but the main focal point has been on the secondary sources as the required data to attain the aim is more suitable here and easy to collect.