Managing Interest Rate Risk in a Rising Rate Environment

Thursday, December 5, 2013
2:00 pm - 2:45 pm Pacific Time

A banker recently said that searching for yield in this interest rate environment “is like picking up nickels in front of a steamroller.” For the last several years, interest rates have been very low, loan growth has been limited, and deposit inflows have been strong. This has led many institutions on a “search for yield,” which has resulted in a broad move to longer-term securities, extended asset duration, and increased interest rate risk exposure. Now, loang-term rates are rising, and several concerning trends and issues are emerging.

In this session, senior staff from the Federal Reserve Bank of San Francisco will illustrate how interest rate risk is increasing at commercial banks in the 12th District and why it is a top regulatory concern. More importantly, the session will cover several important steps that bank management teams should now be taking to ensure that interest rate risk is appropriately managed and controlled.

Your presenters for this Call the Fed presentation are Wallace Young, a Director in the Banking Supervision & Regulation Division at the Federal Reserve Bank of San Francisco, and Jeffrey Plaskett, a Senior Examiner and Market & Liquidity Risk Specialist. This 45 minute FREE session will include a 30 minute presentation and 15 minute question & answer period.

Download presentation materials:

Managing Interest Rate Risk in a Rising Rate Environment (pdf, 510 kb)