Interest Sensitive Liabilities

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Dictionary Says

Definition of 'Interest Sensitive Liabilities'

Any type of short-term deposit held by a bank that pays a variable rate of interest to the customer. Interest sensitive liabilities make up a significant amount of the assets of most banks. These liabilities include money market certificates, savings accounts and the Super NOW account.
Investopedia Says

Investopedia explains 'Interest Sensitive Liabilities'

Regulation Q of the Monetary Act of 1980 initiated a phaseout of interest rate ceilings by 1986. This, plus the elimination of most early withdrawal penalties have increased the volatility of demand deposit holdings in customer accounts. These changes have forced banks to learn new ways to manage their interest rate risk.
Search results for

'Interest Sensitive Liabilities'

  • CFA Question of the Week 12/07/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/120705.asp
    ... I. If interest rates are expected to rise, banks will generally lower the ratio
    of interest sensitive assets to interest sensitive liabilities. II. ...

  • Watch A Bank's Liabilities

    http://stocks.investopedia.com/stock-analysis/2010/Watch-A-Banks-Liabilities-RBCAA-IBOC-CFR-UMBF0503.aspx
    ... The bank had total interest bearing liabilities of $8.6 billion at the end of
    2009, with $7.1 billion due to be priced in less than 12 months. ...

  • Financial Statements: Long-Term Liabilities | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements8.asp
    ... Increases in current liabilities are "sources of cash." Consider an abridged version
    of ... Second, many companies are operationally sensitive to interest rates ...

  • Immunization Inoculates Against Interest Rate Risk

    http://www.investopedia.com/articles/financial-theory/09/bond-interest-rate-immunization.asp
    ... longer durations are more sensitive to fluctuations in ... Interest Rate Immunization
    Strategies Any immunization strategy ... to the duration of liabilities, with the ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Interest Rate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-risk.asp
    ... Accounting Impact; 9.9 Total Interest Cost Components; 9.10 Reporting The Retirement
    Or Conversion of Bonds; 9.11 Accounting For Long-Term Liabilities; 9.12 Post ...

  • Use Duration And Convexity To Measure Bond Risk

    http://www.investopedia.com/articles/bonds/08/duration-convexity.asp
    ... and their values are more sensitive to interest ... In periods when interest rates increase
    unexpectedly, banks can ... fall in value by more than their liabilities. ...

  • CFA Level 1 Study Guide - Equity Investments - Life Cycle Analysis ...

    http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/life-cycle-analysis-business-cycle.asp
    ... Accounting Impact; 9.9 Total Interest Cost Components; 9.10 Reporting The Retirement
    Or Conversion of Bonds; 9.11 Accounting For Long-Term Liabilities; 9.12 Post ...

  • CFA Level 1 Study Guide - Quantitative Methods - The Five ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/time-value-money-interest-rates.asp
    ... Accounting Impact; 9.9 Total Interest Cost Components; 9.10 Reporting The Retirement
    Or Conversion of Bonds; 9.11 Accounting For Long-Term Liabilities; 9.12 Post ...

  • Series 66 Study Guide - Portfolio Risks - Duration and Stock Risks ...

    http://www.investopedia.com/exam-guide/series-66/portfolio-risks/duration-stock-risks.asp
    ... Advice and Rescission; 12.7 Other Penalties and Liabilities: Criminal; ... and is therefore
    the most sensitive to price changes due to interest rate changes. ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Preferred Stock ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/preferred-stock.asp
    ... Interest-rate sensitive - due to the fixed dividend rate, the market price of preferred
    stock tends to increase when interest rates decline and decrease when ...

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