The Office of the Comptroller of the Currency followed up a February advisory letter on interest rate risk last week by issuing details in a question-and-answer format. Senior Deputy Comptroller Douglas E. Harris, whose office supervised the advisory, said most banks are doing a good job with interest rate risk. But he cautioned that "interest rate risk is one of the fundamental risks banks face." Here are excerpts from the Q&A:
Q.: Is interest rate risk the most significant risk facing banks today?