Regulatory Alerts2021-04-13
Added
Guidelines on Interest Rate Risk in the Banking Book (IRRBB)
All commercial and Islamic banks operating in Bangladesh must develop and fully implement an IRRBB model by June 30, 2024, following an experimental adoption period ending June 30, 2021. Banks are required to establish adequate policies, processes, and statistical tools to measure interest rate risk from both earnings and economic value perspectives, while reporting half-yearly to the DOS and BRPD of Bangladesh Bank in prescribed formats starting June 30, 2021. The guidelines mandate that boards approve risk appetite statements, set aggregate limits on a solo and consolidated basis, and ensure independent auditing of IRRBB management processes.
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