EBA publishes final standards and guidelines on interest rate risk arising from non-trading book activities

The European Banking Authority (EBA) published a final set of Guidelines and two final draft Regulatory Technical Standards (RTS) specifying technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions on 20 October 2022. These regulatory products complete the onboarding into EU law of the Basel standards on IRRBB and are crucial given the current interest rate environment. The EBA will also closely monitor their implementation and, more generally, the impact of the evolving interest rates on the management of IRRBB by EU institutions and on other related prudential aspects.