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Interest rate crosswinds buffet IRRBB teams

Political intervention and rapid-fire law changes are skewering bank models for forecasting cashflows

Silver percentage symbols issue chaotically from a red megaphone

Spare a thought for today’s risk managers. Their interest rate models are creaking under the demands of unprecedented actions from maverick political leaders. From mortgage holidays for millions of homeowners, to proposed credit card rate caps, to government pressure on central bank independence: political events are undermining the reliability of the bread-and-butter measures that lenders use to forecast cashflows from interest-bearing financial products.

As a result, risk managers are having

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