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US banks need better defences against rates shock: regulators

Gap between long-term loans and short-term funding means higher rates could trap them

MONEY COMES AND GOES: Bank of America says that any hit that it takes on a rate spike would quickly be offset by new loans made at higher rates.


YEARS of stubbornly low interest rates and expectations that they will remain low for years to come have prompted US banks to shift their balance sheets in ways that put them at risk if rates suddenly spike, regulators are warning.

Banks have been stocking up on long-