Banks try to prepare for – not predict – geopolitical shocks
Risk Live: HSBC and KeyBank frameworks were tested by Iran attacks
Banks are responding to the challenge posed by fast-moving, unpredictable geopolitical shocks by not predicting them.
The goal at KeyBank – the $186 billion-asset US regional lender – is to inoculate the banking book, so it doesn’t matter what path interest rates take.
“I want to be in a position that I don’t care,” said Peter Cai, chief market and treasury risk officer at KeyBank.
At HSBC’s trading
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