However, it is assumed that interest rates rise by 200 basis points across all maturities – in other words, there is a parallel upward shift in the yield curve.
The red lines, meanwhile, show the negative interest rate shock scenario in which rates drop by 100 basis points and 5/6  BIS central bankers' speeches  institutions are allowed (solid line) and not allowed (dotted line) to respond by adjusting their balance sheets. 3 The CET1 ratio is defined as the ratio of CET1 capital to risk-weighted assets.