The regulators EBA and BIS are focusing heavily on the Interest Rate Risk in the Banking Book (IRRBB). This is due to lessons learned from recent financial crises and the current market environment, characterized by high volatility in the equity market and long-lasting low interest rates. Potential interest rate increases by the central banks can lead to sudden jumps in the market rates and cause significant market value losses and long-term changes in the net interest income.
The new EBA regulations, which take effect on January 1st 2016, and the consultative paper from BIS, which is envisaged to take effect in early 2017, pursue identical goals and are very similar in the essential points. BIS additionally proposes an alternative approach where IRRBB is put under Pillar 1 minimum capital requirements.
With the background of the current macro-economic situation and recent regulatory developments, banks are facing considerable, far-reaching challenges. Associated complex issues do not only affect measurement methods and procedural or technical implementations but also impact the risk management and steering paradigms.
We would like to invite you to attend our Roundtable on IRRBB on 21st January 16:00 - 19:00 at Hotel Kämp in Helsinki to discuss and share ideas and experiences together with participants from other banks. We will primarily focus the roundtable discussions on:
To register, please contact Tanja Lehtinen and let us know the contact details of the participants you will bring from your company (name, title, email address). Please register before 8th January, 2016. We look forward to discussing these important topics with you!
Partner, Financial Services
BearingPoint Finland Oy