Overview
Interest Rate Risk in the Banking Book (IRRBB) refers to the risk to a bank’s capital and earnings arising from movements in interest rates that affect banking book positions.
APRA’s IRRBB framework helps authorised deposit-taking institutions (ADIs) to identify and manage interest rate risks, maintain suitable capital levels, and contribute to the stability of the financial system.
This page includes the final prudential and reporting standards, consultation responses, supporting materials and media announcements relating to IRRBB.
Final Prudential Standard
APS 117 – Capital Adequacy: Interest Rate Risk in the Banking Book
Final Reporting Standards
ARS 117.0 – Reporting Standard: Repricing Analysis
ARS 117.1 – Reporting Standard: Interest Rate Risk in the Banking Book
Final Reporting Practice Guide
APG 117 – Capital Adequacy: Interest Rate Risk in the Banking Book
Briefing Sessions and Q&A Packs
Generated from the two IRRBB Parallel Run Briefing Sessions held for ADIs
Consultation and APRA Responses
APRA received feedback from industry throughout the development of the prudential and reporting components of the IRRBB framework. The following documents summarise issues raised and APRA’s responses.
Finalisation of Interest Rate Risk in the Banking Book Requirements
This letter outlines the final prudential requirements, summaries of industry feedback, and details of changes made following consultation.
Includes:
- Attachment A: Summary of submissions and APRA responses
- Transition and implementation guidance
Read the finalisation letter at: Finalisation of Interest Rate Risk in the Banking Book requirements
IRRBB Reporting – Response to Submissions
Summarises submissions received on the draft reporting standards (ARS 117.0, ARS 117.1, RPG 117) and explains APRA’s refinements to the standards.
Read the reporting response to submissions at: Interest Rate Risk in the Banking Book Reporting (IRRBB) – Response to Submissions
Media Announcements and Updates
July 2024
View media release: APRA finalises revised Interest Rate Risk in the Banking Book requirements
December 2023
View media release: APRA moves to reinforce requirements for banks to manage interest rate risk
Implementation and Transition
APRA expects ADIs to take steps to ensure readiness ahead of the 1 October 2025 commencement date.
Key requirements include:
- updating internal risk models
- reviewing behavioural assumptions
- aligning governance and oversight arrangements
- preparing for new reporting obligations
- engaging with APRA supervisors where transitional issues arise
Need assistance with IRRBB reporting?
For questions regarding IRRBB reporting, email DataAnalytics@apra.gov.au or reach out to your APRA supervisory contacts.