The European Banking Authority (EBA) has turned up the heat – quite literally – with its IRRBB Heatmap, a sharp new tool placing interest rate risk management under intensified supervisory scrutiny. For banks across Europe, the message is clear: if you can’t demonstrate detailed, transparent control over your interest rate risk in the banking book, you’re not just behind – you’re exposed.
At MORS, we see this as more than a regulatory burden. It’s an opportunity to take control, gain clarity, and future-proof your balance sheet strategy.
The Heatmap Is Here – And It’s Not Just a Red Flag
The IRRBB Heatmap isn’t theoretical. It’s being used right now by supervisors to prioritise their reviews and assess banks’ maturity in managing interest rate risk. This means banks must show:
- Granular risk modelling
- Consistent assumptions across various interest rate scenarios
- Transparent reporting aligned with regulatory expectations
In short: no more black boxes. Supervisors want visibility. And they want it backed by data, not guesswork.
What This Means for Banks
For many banks, especially at the local and regional level, this new bar can feel uncomfortably high. Legacy systems may struggle to deliver the depth of analysis required. Manual reporting processes increase risk, by introducing human errors. And siloed tools make it hard to connect risk, treasury, and capital insights into the institutions strategy.
That’s exactly where MORS comes in.
Why MORS Makes a Difference
At MORS, we’ve built our platform to meet – and stay ahead of – regulatory pressure. Here’s how we support banks in the IRRBB heatmap era:
Built-In Transparency
No more spreadsheet chaos. MORS offers clear, audit-ready reporting that regulators can follow without extra explanation.
Granular Analysis, Seamless Integration
Our ALM solution drills deep into interest rate risk exposures – and connects those insights directly to capital planning, liquidity, and treasury operations. One platform. One version of the truth.
Actionable in Practice
We don’t just model risk. We help you manage it. Whether it’s stress testing, scenario analysis or dynamic risk tracking, MORS makes regulatory compliance not only possible, but efficient.
Turning Supervision into Strategy
The IRRBB scrutiny is not going away. It’s the new normal. And it’s a wake-up call to all banks still relying on fragmented or outdated systems.
With MORS, you’re not just complying – you’re competing.
You’re showing your supervisors (and your board) that your risk management is under control. That you understand how rate volatility impacts your earnings and capital. And that you’re ready for what’s next – including CSRBB and broader metrics for the NII outlier assessment, which already are emerging as the next regulatory challenges.
Ready to Look in the Mirror?
If the heatmap feels like a warning sign, it’s time to act. MORS gives you the tools, the clarity, and the confidence to meet today’s IRRBB requirements – and lead in tomorrow’s regulatory environment.
Let’s make sure the next time you look into the mirror, the risk is already under control.