On January 7th, the federal banking regulators released an advisory reminding depository institutions of supervisory expectations for sound practices in managing interest rate risk. The advisory clarifies elements of existing guidance and describes interest rate risk-management techniques used by effective risk managers. In an SR Letter to the heads of supervision at the Federal Reserve Banks, the Federal Reserve Board stated that, although the advisory is targeted at depository institutions, the advice provided is also directly pertinent to bank holding companies. Bank holding companies are reminded of supervisory expectations that they should manage and control aggregate risk exposures, including interest rate risk, on a consolidated basis, while recognizing legal distinctions and possible obstacles to cash movements among subsidiaries. Federal Reserve Board Press Release.