Bankers often accuse regulators of fighting the wrong war, and that divide is as visible as ever on the question of interest rate risk.

The banking industry is landing scores of short-term, low-cost deposits while the yield curve is at its steepest since the early 1990s, and investing the proceeds in long-term, higher-paying securities. But that profit model is threatened if the cost to obtain new deposits rises without a similar rise in the rates on new investments.

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