Banks need to manage interest rate risk to protect their profits. Changes in interest rates can affect how much money banks make from loans and deposits. If banks don't handle this risk well, they could lose a lot of money. Past crises in the UK and US show what can happen when banks don't manage interest rate risk properly. However, recent research suggests that banks in many countries are doing a good job of controlling this risk. This means that while interest rate changes can still impact bank profits, they are unlikely to cause major problems for the banking sector. The study focuses on how interest rate changes affect bank profits and finds that most banks are handling this risk well.