See a lot of good things happen due to inflation. /sarcasm
I went to work for the AL State Banking Department in January 1980. The banks learned what interest rate risk was when the rates got high. Deposit interest rates were de-regulated during that period because without the ability to increase deposit rates, deposits were leaving banks for higher yields: disintermediation of funds.
Lots of borrowers got hammered with high loan rates. Bank investment portfolios, mostly consisting of fixed rate investments, experienced heavy market depreciation. Because of that, those with thin liquidity had to take huge securities losses to raise cash. Finally, the number of banks considered “problem” status, were the highest in my examiner career, which ended in 2005.
It was a very tough environment to learn the job of an examiner. A number of bankers were shell-shocked at conditions and there was a lot of tension between examiners and bank management during that period. Interesting, but not fun.