Summary
This document is a guide on managing Interest Rate Risk in the Banking Book (IRRBB) in the context of evolving regulatory standards. It outlines the increasing importance of effective IRRBB management due to the alignment of Bank Negara Malaysia with Basel IRRBB standards. The guide emphasizes that banks should view IRRBB not merely as a compliance requirement but as a strategic component that can enhance profitability and stability. It details key milestones in IRRBB implementation across the Asia-Pacific region, highlighting actions that leading banks are taking to integrate IRRBB into their business planning and governance frameworks. The document also presents a structured implementation roadmap for banks to achieve IRRBB readiness, addressing challenges such as limited behavioral data and the need for technology enablement. By following the outlined steps, banks can strengthen their risk management practices and ensure compliance with regulatory expectations.
