Abstrakt
This paper focuses on interest rate sensitivity of volumes of non-maturing bank products in the Czech Republic. First, we theoretically discuss economic reasons why non-contractual liabilities are expected to be interest rate sensitive, while non-maturing assets are not.
Second, we test our hypotheses on time series of dynamics of volumes and client rates of non-maturing products in the Czech Republic in the 1993-2015 period. We conclude that non-maturing liabilities exhibit interest rate sensitivity of volumes, while non-maturing assets are largely insensitive.