This is because they do not hedge their interest rate risk to the same degree as larger institutions. Higher interest rates are weighing on the prices of securities; banks holding securities may therefore have to make writedowns which could, in some cases, have a severe impact on their capital.
We are asking for your input into the first stage of our review of the Consumer Protection Code. We want any changes to the Code to be informed by the experiences and insights of those whom it seeks to protect as well as those it regulates.