compliance with the interest rate risk regulation. Although hedging motives dominate, we find selective hedging behavior in swap …-balance-sheet exposure and interest rate swap use. Our findings show that both decisions are substitute risk management strategies. A higher … swap use. Exogeneity tests indicate that both decisions are only endogenous to each other for banks that start using swaps …

of Depository Trust and Clearing Corporation's (DTCC) proprietary bilateral credit default swap transactions and … effect on the hedging behaviour against the counterparty. As the current regulatory frameworks explicitly formulate any … capital relief motives and provides a viable hedging instrument beyond receiving coverage through collateral. …

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 …

the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as …

exposure in their banking books: They take account of their regulatory situation and adjust their exposure to the earning …