This paper discusses the fundamental risks for banks and financial derivatives, with interest rate derivatives being the most used for risk mitigation in banks. They enable banks to reduce potential risks by protecting their assets and off-balance-sheet items within acceptable parameters. The utilization of derivatives is regulated by laws and other risk management rules. The paper examines and analyses the impact of financial derivatives, focusing on interest rate derivatives, with the volume of transactions being presented in this study. The paper demonstrates the classification of financial instruments, transaction venues, and the methods of recording these processes in accordance with regulations. Interest rate derivatives, particularly swap contracts, dominate the global banking industry. Following empirical research, the study analyses the influence of interest rate derivatives, specifically swap contracts, on the earnings of two global banks. In the conclusion, an overview of the key points of the study and the impact of financial derivatives on banks is provided, demonstrating that there is no direct correlational relationship or impact on the earnings of the observed banks. Finally, recommendations are given for further research on the impact of derivatives on banks.