APRA updates banking standards to manage interest rate risk more effectively

The updates aim to reduce volatility in the IRRBB capital charge, enhance incentives for risk management, and simplify the IRRBB framework.

The Australian Prudential Regulation Authority (APRA) has issued updated requirements for banks to enhance the management of interest rate changes' impact on their financial positions.

The revisions to Prudential Standard APS 117 Interest Rate Risk in the Banking Book (IRRBB) aim to reduce volatility in the IRRBB capital charge, enhance incentives for risk management, and simplify the IRRBB framework.

ALSO READ: APRA keeps current macroprudential policy settings

Larger banks will see changes addressing concerns about the treatment of embedded gains and losses, with expectations of reduced volatility in the IRRBB capital charge.

A short consultation has been initiated for aspects relevant to smaller banks, with the goal of finalizing APS 117 by mid-2025.

Follow the link for more news on

Australian Prudential Regulation Authority

Also Read

Gov’t support keeps APAC banks stable

Why is willful default a growing threat to Bangladesh’s financial stability?

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit