Interest Rate Risk

The acceptance and management of financial risk is inherent to the business of banking and banks’ roles as financial intermediaries. To meet the demands of their customers and communities and to execute business strategies, banks make loans, purchase securities, and take deposits with different maturities and interest rates. These activities may leave a bank’s earnings and capital exposed to movements in interest rates. This exposure is interest rate risk.

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Interest Rate Risk, Comptroller's Handbook

References

Interest Rate Risk Statistics Report (OCC Bulletin 2020-91, October 27, 2020)

Interest Rate Risk: Revised Comptroller’s Handbook Booklet (OC Bulletin 2020-26, March 26, 2020)

Interest Rate Risk: Interagency Advisory on Interest Rate Risk Management (OCC Bulletin 2010-1, January 2010) and FAQs on 2010 Interagency Advisory on Interest Rate Risk Management (OCC 2012-5, January 2012)

Guidance providing sound risk management practices to manage interest rate risk exposures.

Sound Practices for Model Risk Management: Supervisory Guidance on Model Risk Management (OCC Bulletin 2011-12, April 2012)

Guidance covers expected oversight of computer models used in risk management activities.

Embedded Options and Long-Term Interest Rate Risk (OCC Bulletin 2004-29, July 2004)

Guidance covers measuring cash flow and valuation risks for assets and liabilities with embedded options.

Investment Securities (OCC Bulletin 1998-20, April 1998)

Guidance on managing the risks of investment activities.

Risk Management of Financial Derivatives (BC 277, November 1993)

Prudent risk management practices for financial derivatives activities.

Date	ID	Title
10/16/2025	OCC 2025-33	Interest Rate Risk: Interest Rate Risk Statistics Report
12/08/2022	NR 2022-147	OCC Reports on Key Risks Facing Federal Banking System
03/26/2020	OCC 2020-26	Interest Rate Risk: Revised Comptroller’s Handbook Booklet