Requirements for all ADIs

1. IRRBB is a material risk and is a category of market and investment risk under Prudential Standard CPS 220 Risk Management (CPS 220). As part of its risk management framework required under CPS 220, an ADI must ensure that it appropriately manages its IRRBB, commensurate with the nature, scale and complexity of its operations.
2. An ADI’s senior management must regularly (at least semi-annually) report its IRRBB exposure to its Board or Board committee.
3. Where APRA determines that an ADI is not appropriately managing, measuring or monitoring its IRRBB or is carrying excessive interest rate risk, APRA may require the ADI to hold additional regulatory capital, commensurate with its IRRBB and/or, in the case of a non-SFI or an SFI that does not have IRRBB model approval, comply with all or additional requirements in this Prudential Standard.