Chart 5. The title is "Banks Realized Gains when Rates Declined, But Recognized Losses when Rates Increased".

A decrease in the average 10-year U.S. Treasury rate allowed nearly half of all banks to realize net securities gains during 2001, 2002, and 2003; over that same period, less than 5% of banks realized net securities losses. During the 1990s, however, gains (losses) fluctuated with declines (increases) in the U.S. Treasury rate over time. Years in which the largest share of banks realized net securities losses were 1994 (32%) and 2000 (27%), two years in which the long-term U.S. Treasury rate increased.