Published: 2025-03-10
As the Interest Rate Risk in the Banking Book (IRRBB) framework continues to evolve, banks must adapt to increasingly stringent and complex regulatory requirements. The IRRBB regulations have undergone major updates in 2023-2024 with The Swedish Supervisory Authority’s FI Dnr 24-4186 and the EBA Guideline EBA/GL/2022/14 with ancillary Regular Technical Standards.
An IRRBB model validation is essential for identifying potential weaknesses, reducing model risk, strengthening decision-making capabilities, and ensuring compliance with regulatory updates. An IRRBB model validation process enhances your IRRBB model by, including but not limited to, verifying key assumptions, stress testing scenarios, and verifying the model’s technical aspects.
At zeb, we offer an expert IRRBB model validation service to help banks stay ahead of regulatory developments while ensuring their IRRBB management frameworks remain robust, transparent and compliant. Our approach combines deep regulatory expertise with industry best practise, ensuring that banks not only meet compliance requirements but also enhance their interest rate risk management in today’s dynamic interest-rate environment.
Want to learn more? Read below how our IRRBB model validation solution can help you establish a stronger foundation for effective IRRBB management.
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