More about the Interest Rate Risks for the Banking Book (IRRBB) and CSRBB Credit Spread Risk in the Banking Book (CSRBB)

The work of the European Banking Authority on interest rate risks for the banking book (IRRBB) and credit spread risk arising from non-trading book activities (CSRBB) elaborates on the technical aspects of the management and supervision of interest rate risk.

This implies risks to a bank's earnings and capital position arising from the impact of adverse movements 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 as excessive interest rate risk can also threaten a bank’s financial position.