Regulator to ‘reflect’ on IRRBB shocks after rates leap

Once considered too harsh by banks, stress scenarios may even prove too generous

Rates rise
Risk.net montage

The European banking regulator will reconsider whether a key test of banks’ resilience to interest rate shocks will need to be recalibrated in light of the sharp rises in base rates and interbank lending levels over recent months.

The test – part of global standards on interest rate risk in the banking book, or IRRBB – forces banks to stress-test their lending business under a series of hypothetical scenarios, including a sudden jump in rates of up to 2.5 percentage points.

The US has seen a 3

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: