We analyse the effect of distinct levels of interest rates on the stability of the financial network under our
modelling framework. We demonstrate that banking failures are likely to emerge early on under sustained
high interest rates, and at much later stage - with higher probability - under a sustained low interest rate
scenario. Moreover, we demonstrate that those bank failures are of a different nature: high interest rates
tend to result in significantly more bankruptcies associated to credit losses whereas lack of liquidity tends to
be the primary cause of failures under lower rates.