Position: Interest Rate Risks for the Banking Book (IRRBB) en CSRBB Credit Spread Risk in the Banking Book (CSRBB)

12 October 2022

The European Banking Authority's work on interest rate risk for the banking book (IRRBB) and credit spread risk from non-trading book activities (CSRBB) takes a closer look at the technical aspects of managing/monitoring interest rate risk.

 

These are risks to a bank's profit and capital position arising from the impact of unfavorable developments in interest rates. Accepting this risk is a normal part of banking and can be an important source of profitability and shareholder value. However, sound risk management is important because excessive interest rate risk can also threaten a bank's financial position.