Application

1. This Prudential Standard applies to all authorised deposit-taking institutions (ADIs), other than foreign ADIs and purchased payment facility providers. Additionally, APRA may determine that this Prudential Standard applies to a specified foreign ADI if APRA considers that the foreign ADI is not appropriately managing, measuring or monitoring its IRRBB or is carrying excessive interest rate risk, and require the foreign ADI to comply with some or all of the requirements in this Prudential Standard.

2. A reference to an ADI in this Prudential Standard, unless otherwise indicated, is a reference to:

   1. an ADI on a Level 1 basis; and
   2. a group of which an ADI is a member on a Level 2 basis.

3. If an ADI to which this Prudential Standard applies is:

   1. the holding company for a group, the ADI must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable; or
   2. a subsidiary of an authorised non-operating holding company (authorised NOHC), the authorised NOHC must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable.

4. A non-significant financial institution (non-SFI) does not have to comply with the requirements in paragraphs 17 to 63, and Attachment A to this Prudential Standard, unless otherwise required by APRA under paragraph 16 of this Prudential Standard.

5. An ADI that has IRRBB model approval must satisfy all of the requirements set out in this Prudential Standard. Significant Financial Institutions (SFIs) that do not have IRRBB model approval must satisfy all of the requirements in this Prudential Standard with the exception of paragraphs 47(b), 57, 60, 62, 63, and Attachment A, unless otherwise required by APRA under paragraph 16 of this Prudential Standard, in a way that is commensurate with the nature, scale and complexity of the ADI’s operations.

6. This Prudential Standard commences on 1 October 2025.