A bank's assets tend to be long-term while its liabilities are short-term.Therefore, when interest rates raise the value of the bank's assets:

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When interest rates rise, the value of long-term assets decreases more than short-term liabilities. This is because long-term assets are sensitive to interest rate changes and their value decreases as interest rates rise. Short-term liabilities, on the other hand, can be rolled over at the new higher interest rate, so their value decreases less. As a result, the value of assets decreases by more than the value of liabilities.

A Bank's Assets Tend to Be Long-Term While Its Liabilities