APRA finalises revised Interest Rate Risk in the Banking Book requirements

The Australian Prudential Regulation Authority (APRA) has finalised revisions to its framework for Interest Rate Risk in the Banking Book (IRRBB) requirements for authorised deposit-taking Institutions (ADIs).

In letters released today, APRA sets out its response to submissions to the December 2023 consultation on IRRBB reforms, issuing the final revised Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (APS 117), Reporting Standard ARS 117.0 IRRBB Repricing Analysis Collection (ARS 117.0) and Reporting Standard ARS 117.1 IRRBB Capital Charge Collection (ARS 117.1). Accompanying the final revised prudential and reporting standards are the final revised practice guides. The final revised APS 117 will be effective from 1 October 2025.

The letters, non-confidential submissions to the December 2023 consultation, and final revised prudential and reporting standards and guidance can be found at: Interest Rate Risk in the Banking Book.