the interest rate risk regulation. Although hedging motives dominate, we find selective hedging behavior in swap use …-balance-sheet exposure and interest rate swap use. Our findings show that both decisions are substitute risk management strategies. Hausman …

compliance with the interest rate risk regulation. Although hedging motives dominate, we find selective hedging behavior in swap …-balance-sheet exposure and interest rate swap use. Our findings show that both decisions are substitute risk management strategies. A higher … swap use. Exogeneity tests indicate that both decisions are only endogenous to each other for banks that start using swaps …