The association between the derivatives products and the financial Dissertation

The link between the derivatives returns and the pecuniary risk counselling is quite a an substantial and epochal - Dissertation ExampleIn order to ope gait in an effective manner, the banks need to manage their assets and liabilities from the respective(a) risks prevailing in the economy, one of which is the recreate point risk. Interest count risk is the risk to compensation or capital arising from movement of interest rates. The need to manage the interest rate risk is precise crucial for any bank and it has generally been observed that the interest rate risk management level the integral part of the risk management policies of all major global banks. This dissertation analysis the intensity of interest rate swaps in managing the interest rate risk faced by the UK banks and also how these derivatives product improves financial outlook of these banks. For the purpose of conducting the take apart, a vicenary and qualitative analysis was conducted on a essay of 12 major UK based banks. Through this analysis the conclusion is drawn that interest rate swaps is quite an effective hedging tool for the management of the interest rate risk and also for improving the financial outlook of a bank. Problem Statement In the global conventional economic environment, it would be quite interesting to evaluate the usage of the interest rate swaps by the financial institutions of UK, particularly multinationals banks. In this study 12 major banks of UK are selected and through both qualitative and quantitative research, the effectiveness of interest rate swaps is evaluated in managing and curtailing the financial risk. Research aim and objective The association between the derivatives products and the financial risk management is quite substantial and significant. The purpose of this paper is to conduct research on the basis of an expected analytical outcome, based on qualitative and quantitative analysis of the financial statements of UK banks, that how the y have implemented the interest rate swaps in their risk management strategy. In this dissertation proposal the aims and objectives are as follows To clarify the influencing force that the interest rate swaps in the global financial market in terms of managing and curtailing risk. Through quantitative and qualitative research and analysis, evaluate how giant UK banks are safeguarding their risk of being exposed to interest rate fluctuation in both the local and international financial market. Through a questionnaire, conduct an discourse with the major finance personnel of these banks in order to obtain their views about the effectiveness of interest rate swaps in managing interest rate and financial risk. Research Questions Is there any positive significant association between interest rates swaps and financial risk management process? How interest rate swaps flora in the global financial market? How effective are interest rate swaps in managing and curtailing the interest rate risk and financial risk faced by the UK banks? Dissertation Layout The first Chapter