Interest rate derivatives in developing countries in Europe

Financial derivatives (interest rate futures, options and swaps) are a very simple way to minimize interest rate risk and therefore are extremely popular. The value of interest rate derivatives transactions in the world is increasing dramatically. Unfortunately, this is not the case with developing countries in Europe. Although significantly increased in the last decade, interest rate derivatives markets in developing countries are still in nascent stage. In most developing countries still the main problem for the interest rate derivatives development is the lack of basic conditions, including inadequate measurement of interest rate risk exposure, underdevelopment of financial markets in general and especially of market instruments that underlying derivatives, weak and/or inadequate infrastructure and legal framework, misunderstanding and lack of experience in operations with financial derivatives and the complexity of the derivatives accounting.


Issue Date:
Nov 10 2011
Publication Type:
Journal Article
DOI and Other Identifiers:
10.22004/ag.econ.128655
1804-0527 (PRINT) (Other)
Record Identifier:
https://ageconsearch.umn.edu/record/128655
PURL Identifier:
http://purl.umn.edu/128655
Published in:
09, 3
Perspectives of Innovations, Economics, and Business
Page range:
38-42
Total Pages:
5
JEL Codes:
G15




 Record created 2017-04-01, last modified 2020-10-26

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