Banks trade interest rate derivatives for different reasons. Some use swaps to balance their financial risks, while others take on more risk by speculating in these markets. This study looked at banks' derivative portfolios and how they affect their exposure to interest rate changes. The researchers used data from banks' reports and filings to compare risk levels with and without derivatives. The findings show that some banks use derivatives to manage their balance sheet risks, while others use them for speculation, potentially increasing their vulnerability to interest rate fluctuations.