INTEREST RATE HIKE AND THE INSTABILITY IN THE U.S. BANKING INDUSTRY

This paper investigates the effect of interest rate changes on the U.S. banks’ performance captured by unrealized losses, investment securities allocation, and deposit withdrawal. We show that a sudden surge in interest rates could lead to massive losses, potentially erasing the market value of a b...

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Bibliographic Details
Main Authors: Lai Vo, Huong Le
Format: Article
Language:English
Published: Tuwhera Open Access Publisher 2024-12-01
Series:Applied Finance Letters
Online Access:https://ojs.aut.ac.nz/applied-finance-letters/article/view/744
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