The Daily Read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

The uncertainty in rates markets presents both risks and opportunities for the banking industry. But in the absence of recent precedent, many institutions lack the necessary playbook to tackle the challenge. To manage volatile interest rates, leading banks are revisiting practices of the past that may no longer be fit for purpose—or at least should be updated for the new environment, write McKinsey's Andreas Bohn and coauthors. In a new article, they share five steps banks should take to more effectively set themselves on the right course.

Banking on interest rates: A playbook for the new era of volatility

Five levers can help banks set themselves on a course to more proactive and effective interest rate risk management.

5 levers for risk management

Quote of the day

“Today’s GCC [global capability centers] is a microcosm of an enterprise. Every single enterprise function is deeply embedded in the GCC. Now, when we look at the GCCs in terms of innovation, most of the GCCs’ strategies are currently aligned or were formerly intertwined with the strategic priorities or directions of the enterprise.”

—Debasis Panda, senior vice president, global operations, at TransUnion, on the opportunities for GCCs to become catalysts for transformation in “Global capability centers: From execution to transformation”

Chart of the day

A chart titled “The total potential GDP impact of closing the women's health gap in all countries is $1.0 trillion.” Click to open the full article on McKinsey.com.

See today’s chart

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— Edited by Esther Chung, editor, Atlanta

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Banking on interest rates: A playbook for the new era of volatility

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Introducing “The McKinsey Publishing Guide to managing yourself and others”﻿

Introducing “The McKinsey Publishing Guide to managing yourself and others”