There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

Question

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It is true that regulators place importance on a bank's sensitivity to interest rate movements because many banks have liabilities that are repriced more frequently than their assets and are therefore negatively impacted by rising interest rates. This is known as interest rate risk.

There Is Much Emphasis by Regulators on the Bank's Sensitivity