Interest Margin Computer Models

In banking it will be of utmost importance to face the uncertainties and the volatilities of the interest margin all the time. So management in banking is anxious to know the present and future developments of interest margin. There are several motives to face the interest margin conscientious, for instance: — Profit in banking is chiefly determined by interest margin;— Interest margin can be influenced by decisions about liquidity reserve level, capital adequacy level, strategy on matching the assets and liabilities, and so on;— Interest margin is sensitive to and dependent on external phenomena such as structures of interest markets, volatility of foreign exchange rates, economic and political developments.