“…Specifically, Ferrer, González, and Soto (2010) and Ballester, Ferrer, and González (2011) find that Spanish banks are significantly and positively exposed to interest rate changes in the post-euro period. Bessler, Kurmann, and Nohel (2015) also find that US banking industry stock returns are positively related to interest rate changes post 1999. Proposed reasons include the lack of adequate competition in the banking industry, the widespread use of adjustable rate loans, expansion of asset securitization, intensive use of interest rate derivatives, and difficulties maintaining margins in the low interest rate environment of recent years (Ballester et al, 2011;Bessler et al, 2015;Faff & Howard, 1999;Ferrer et al, 2010;Ho & Saunders, 1981;Lepetit, Nys, Rous, & Tarazi, 2008;Sukcharoensin, 2013).…”