Interest rate risk is the chance that interest rates may increase, decreasing the value of bank assets.

Name: Interest rate risk is the chance that interest rates may increase, decreasing the value of bank assets.
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Interest rate risk refers to the potential for interest rates to change, which can negatively impact the value of financial assets, such as loans and securities, that banks hold. When interest rates rise, the value of existing fixed-income assets typically decreases.

Interest Rate Risk Is the Chance That Interest Rates May