Interest rate risk, i.e. the situation of interest rate risk arises when there is a rapid increase in interest rates within a short period. In such a situation, a problem arises in front of the banks. This is what has happened in America since March . The Federal Reserve Bank, ie the central bank of America, is aggressively increasing the interest rates, so that rising inflation can be controlled. The Federal Reserve has increased interest rates by 4.5 percentage points since last year. As a result, interest recovery on loan has increased at a proportionate rate. That is why the interest rate on one-year US Government Treasury notes in March 2023 was the highest level in the year 5.55 per cent, which was less than 0.5 per cent at the beginning of . As the yield on a security increases, its value decreases. This is the reason why the sharp rise in interest rates in such a short period of time has led to sinking of previously issued loans, be it corporate bonds or government treasury bills. This is especially the case with long term loans. A substantial portion of Silicon Valley Bank’s own assets, 55 percent, were invested in fixed-income securities, for example in US government bonds.