The optimum leverage level of the banking sector

Banks make profits from the difference between short-term and long-term loan interest rates. To issue loans, banks raise funds from capital markets. Since the long-term loan rate is relatively stable, but short-term interest is usually variable, there is an interest rate risk. Therefore, banks need...

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Bibliographic Details
Main Authors: Dewasurendra, S. (Author), Judice, P. (Author), Zhu, Q. (Author)
Format: Article
Language:English
Published: MDPI AG 2019
Subjects:
Online Access:View Fulltext in Publisher