SVB crash: ECB is concerned over rate risk management

Answering questions about the bank run on Silicon Valley Bank, the European Central Bank on Sunday underlined its concerns over how European banks are managing risks relating to increasing interest rates. The ECB reiterated that a recent supervisory review found weaknesses at banks, including ignoring consumer behaviour shifts that could lead to deposit withdrawals when rates rise. “Beyond a certain point, it could become an issue,” ECB chief bank supervisor Andrea Enria said in a Latvian interview last week.