Regulatory Alerts2023-12-20
Interest Rate Risk in the Banking Book
The Supervisor of Banks issued Circular C-06-2766 to replace Proper Conduct of Banking Business Directive no. 333 with updated principles aligned with the Basel Committee's revised standards on Interest Rate Risk in the Banking Book. The new directive mandates enhanced governance, measurement, and stress testing requirements, including a standardized framework for managing risk and a specific definition for identifying outlier banking corporations. These regulatory changes become effective on July 1, 2025, requiring banking corporations and acquirers to implement the revised management processes and disclosure protocols.
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