This Exposure Draft sets out the proposed rules for Interest Rate Risk in the Banking Book (IRRBB) for financial institutions. The requirements consist of:

1. qualitative principles on IRRBB management;
2. a quantitative Standardised Framework for financial institutions to measure and report IRRBB; and
3. the Bank’s expectations on Pillar 2 capital allocation for IRRBB.

The qualitative principles set out the Bank’s supervisory expectations on the general application of sound principles for the management of IRRBB, in particular the need for effective IRRBB identification, measurement, monitoring and control.

The Bank invites written feedback on the proposed regulatory requirements in this Exposure Draft, including suggestions for specific issues, areas to be clarified or elaborated further, and alternative proposals that the Bank should consider.

Submissions should be made electronically to the Bank by 30 January 2026 to [email protected] and addressed to Pengarah, Jabatan Dasar Kewangan Pruden. Submissions received may be made public unless confidentiality is specifically requested for the whole or part of the submission.

Issuance Date:
30 September 2025

Issuing Department:
Jabatan Dasar Kewangan Pruden

Document:
Exposure Draft on Interest Rate Risk in the Banking Book (IRRBB)