We study the allocation of interest rate risk within the European banking sector using novel data. Banks' exposure to … redistributive effects within the banking sector. …

This paper investigates determinants of banks' structural exposure to interest rate risk in their banking book. Using … banking book. Moreover, there is evidence that banks hedge their earnings risk resulting from falling interest levels with …

compliance with the interest rate risk regulation. Although hedging motives dominate, we find selective hedging behavior in swap …

the interest rate risk regulation. Although hedging motives dominate, we find selective hedging behavior in swap use …

Under a "mea culpa" framework, evidence suggests that financial institutions practice discretionary hedging of both … intensifying hedging with interest rate derivatives as HTM and AFS portfolio losses accrue, and by reducing hedging intensity as … portfolio gains accrue. As funding risk increases, banks also intensify hedging, suggesting the mistakes of Silicon Valley Bank …

We present a coherent management framework for non-maturity accounts to derive the hedging strategy from the marketing … rate and marketing assumptions and to build the dynamic hedging strategy …