Australia: Consultation on IRRBB Framework launches
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The Australian Prudential Regulation Authority (APRA) has commenced a second consultation on requirements in Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (IRRBB).
APA 117 aims to strengthen the prudential framework for interest rate risk in the banking book (IRRBB), as well as implement the Basel standard.
APRA is proposing revisions to both the capital calculation and the risk management requirements, as well as the application of the risk management requirements for IRRBB to standardized authorized deposit-taking institutions (ADIs) and foreign ADIs for the first time.
Stakeholders are to submit comments by December 6, 2019.