Key facts
- KeyBank is developing frameworks to prepare for geopolitical shocks.
- The strategy focuses on making the banking book resilient to interest rate changes.
- Peter Cai is the chief market and treasury risk officer at KeyBank.
Banks are adapting to unpredictable geopolitical events by focusing on resilience rather than prediction. KeyBank, a US regional lender with $186 billion in assets, is implementing strategies to fortify its banking book. The objective is to ensure the bank's stability irrespective of interest rate fluctuations or the specific path geopolitical events may take. Peter Cai, chief market and treasury risk officer at KeyBank, stated the goal is to reach a position where the bank 'doesn’t care' about these external factors.