The exchange rate exposure of Greek banking institutions

Abstract

Outlines the effect of exchange rate fluctuations on bank performance and investigates the relationship between exchange rate exposure and stock value for eight major Greek banks. Explains the methodological problems involved, develops a mathematical model and applies it to 1995‐1998 data for the banks. Discusses the results for each bank individually and suggests that although their stock returns are affected by exchange rate variations, other factors (e.g. asset/liability structure, management style etc.) are also important. Calls for further research on the impact of changes in exchange rates.

Citation

Merikas, A.G. (1999), "The exchange rate exposure of Greek banking institutions", Managerial Finance, Vol. 25 No. 8, pp. 52-60. https://doi.org/10.1108/03074359910766118