Impact Of Financial Derivatives On America's Bank Holding Company's Stock Return Sensitivity

This paper examine the impact of the derivatives activity on commercial banks based on the panel data from 25 large U. S. bank holding companies by establishing two-way, time-series regression model. So as to evaluate financial derivatives′effects on commercial banks′performance more comprehensively, this paper finds since the commercial banks themselves can effectively circumvent the interest rate risk, interest rate derivatives do not have efficient effect on the proceeds of commercial banks,; concerning interest rate, as the commercial banks are impacted by exchange rate risks factors, he exchange rate financial derivatives affect earnings of commercial banks visible; the relationship between the degree of positive correlation and credit derivative products are positive. The papers goes as follows:The First chapter includes introduction, the topics of the background and significance, literature review, research objectives and research methods, research ideas and thesis structure, main ideas and innovation.The Second Chapter illustrates the financial derivatives and risk management analysis.This chapter introduces the concept of financial derivative products, development, types, etc., and from the financial derivative products, features, analyzes the financial derivatives in commercial bank risk management role. This is also the commercial banks to use financial derivatives risk management theory.The Third Chapter is the introduction of the international financial derivative markets and their role in the international financial markets. This chapter focuses on analysis of international financial markets in recent years, the development of off-floor business and business growth analysis, it is important financial derivatives instruments (interest rate derivatives, currency derivatives and credit derivative products) in the application of international financial markets, thus proposed the application of financial derivatives on the commercial banks interest rate risk, exchange rate risk and credit risk avoidance and so effective.The Fourth chapter is the design of the study. This chapter is mainly based bank holding the Group's financial management report in connection with bank holding groups in the use of financial derivatives in the U.S. financial market, select the top 25 largest bank holding group, design variables, and to identify research ideas and steps. Research method is mainly seemingly unrelated regression and time series panel data analysis, bank holding groups on the basis of regression analysis, using a two-stage analysis method, the use of financial derivative products, the impact on bank earnings.The Fifth chapter goes through the empirical analysis of commercial banks, financial derivatives the performance impact analysis. This chapter analyzes the use of financial derivatives products, commercial banks, in particular the impact of bank holding group, in contrast to the table with the balance-sheet business conditions, which were analyzed the interest rate derivatives, currency derivatives and credit derivatives on banks of , demonstrate financial derivatives in the banking risk management role.The last chapter is the conclusions, shortcomings and future research prospects. This chapter includes the content of the preceding studies were analyzed and summarized the study also pointed out the shortcomings, as well as the work of future research prospects.The results shows that, from an overall point of view, since the commercial banks themselves can effectively circumvent the interest rate risk, interest rate derivatives, the proceeds of commercial banks, little effect; relative to interest rate risk is concerned, since the commercial banks to avoid exchange rate risks they are subject to kinds of factors, so the exchange rate financial derivatives affect earnings of commercial banks, more visible, prompting commercial banks to keep the exchange rate increased the use of derivative products; and credit derivative products, while holding positions with the bank's developing health the relationship between the degree of positive correlation.