SocGen, ING most exposed to rate shocks among EU banks

Banks’ economic value of equity would shrink under higher rates scenarios

Societe Generale and ING Bank are the European systemic banks most at risk of an equity hit from rising interest rates, according to a Risk Quantum analysis.

As part of the interest rate risk in the banking book (IRRBB) framework, European Union banks are required to quantify the hit to the economic value of equity (EVE) – the net present value of cashflow assets and liabilities – across six rate-shock scenarios. If EVE drops by an amount higher than 15% of Tier 1 capital, the bank is flagged

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here