PRMIA NL meeting: What happens when the interest rates go up?
17 April 2018
The latest PRMIA NL chapter meeting was held at AIF on the evening of 17 April. We had a full house of risk professionals who came to listen to the two expert speakers: Wilson Jan Kansil (ALM Senior Expert) and Bram van den Hoek (Head of ALM Modelling at Rabobank).
After several years of monetary expansion, the era of zero interest rates is approaching its natural end. In this PRMIA meeting, the simple question was: What happens when interest rates go up? As it turned out, the question may have been simple but the answer certainly isn't! There were a lot of interesting points and follow-up questions from the audience - but no definite answers. What will be the impact of rising rates on the profitability and economic soundness of banks? What are the hidden surprises of rising interest rates? The discussion will continue...