The ECB’s hand in banks’ billion-dollar hedging lossesBy Nicholas Dunbar
December 11, 2023
Rising interest rates should be good for banks. The Stoxx Europe banks index recently hit a seven-year high on hopes that 10 successive European Central Bank rate hikes were finally boosting banks’ income. But things are never so straightforward, for one simple reason: hedging.
Witness French banking ...
Banks in emerging markets may find it "challenging" to address rising interest rate risk without the use of more sophisticated hedging tools, the Bank for International Settlements has warned. Interest...Read more