Banks markedly increased their holdings of swaps and similar derivatives in the second quarter - despite a wave of publicity about losses on the instruments.
By one key measure. banks' holdi,ngs of off-balance-sheet derivatives increased by more than 10% in the period. The notional amount of the instruments - the base used for calculating payments - increased to $15.3 trillion from $13.9 trillion. according to Veribanc Inc., Wakefield, Mass.