Banking Supervisor: Banks and Interest Rates

banking supervisor: Of the other banks, 34 received a mark of 3 and 17 scored a 4, according to The Japan Times. This was in line with our expectations, said Korbinian Ibel, one of four heads of micro-prudential supervision at the ECB, which assumed the role of banking supervisor for the euro area in 2014. On a scale running from a top mark of 1 to the lowest of 4, 60 out of 111 banks scored 1 or 2 in the test, the ECB said. ; For the first time, the stress test examined how sudden changes in interest rates will affect banks' income and the value of their assets. On average, banks' net interest income will decrease 7.5 percent by 2019 if interest rates remain at their present historic lows. Nevertheless, higher rates could have the negative impact of eroding the value of the banks' assets, making them less attractive. But if interest rates rise by 2.0 percentage points, that will boost banks' net interest income by 10.5 percent over the same period. (news.financializer.com). As reported in the news.