In the context of interest-rate risk management, the treatment of swaps mirrors that of on-balance-sheet instruments. Specifically, an interest-rate swap where an institution receives floating-rate payments while paying fixed-rate interest is essentially viewed as a dual position: a long position in a floating-rate instrument that aligns with the time until the next interest reset, and a short position in a fixed-rate instrument with a maturity that corresponds to the swap's duration.

This regulatory stance underscores the need for financial institutions to rigorously evaluate their interest-rate exposure, ensuring robust compliance with applicable risk management protocols.