This will weigh on the income statement, in terms of profit or loss from trading, and directly on capital, in terms of unrealised losses on assets measured at fair value, which affects 'other comprehensive income'. However, the total accounting impact should be limited, as the share of securities held by banks in their trading books is not very high.
4/8  BIS - Central bankers' speeches  25. Thirdly, interest rate hikes, especially if coupled with an economic downturn, may affect debt service payments and, as a result, the quality of bank loans. This effect normally lags behind somewhat, and there are no clear signs of it so far. At a later stage, however, we may reasonably expect an increase in loan losses.