Regulatory Alerts2002-01-01
Added · Updated
Recommendation G on Interest Rate Risk Management in Banks
The National Bank of Poland’s Banking Supervision Commission issued Recommendation G to establish comprehensive and consolidated interest rate risk management principles for all banks, replacing the 1999 version. It mandates that supervisory boards oversee risk-taking policy alignment with strategic objectives, while management implements tailored measurement systems, internal controls, and clear limit frameworks to mitigate repricing mismatch, basis, option, and yield curve risks. Banks must adapt the sophistication of their risk management processes to their size and product complexity, ensuring independent control functions, regular stress testing, and robust reporting to safeguard financial results, liquidity, and solvency.