Also, European supervisors are well aware that the ongoing, fast-paced changes in monetary policy conditions are increasing our banks' exposure to interest rate risk. Within the SSM, we therefore started assessing interest rate risk as early as the second half of 2021, when the first signs of inflationary pressure emerged. And in 2022, interest rate risk was included in our supervisory priorities.
So these are all positives. 3/4  BIS - Central bankers' speeches  But there is absolutely no reason for complacency. Interest rates are still rising, and this leads to risks related to funding costs and interest rate sensitivity, or credit-related risks. And the high level of debt and interconnectedness in the system creates vulnerabilities, as well as a large number of unknown unknowns.