How Does Economic Value of Equity (EVE) Help Banks Measure Risk? Economic Value of Equity (EVE) Banks typically employ a couple of methods to measure interest rate risk and to comply with banking regulations.  The first is net-interest income (NII) which reflects short-term interest rate risk.  The other is Economic Value of Equity (EVE), which analyzes long-term interest rate risk. An internationally accepted standard for determining interest rate risk is to stress-test EVE.   ...