Okuzeka
Finance & Banking vocabulary · Risk Management

Interest rate risk in the banking book

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, interest rate risk in the banking book means: Risk to a bank's earnings or economic value from interest-rate changes affecting banking-book positions.

In Turkish: bankacılık hesaplarından kaynaklanan faiz oranı riski

How it is used

Abbreviated IRRBB; distinguish it from the market-risk treatment of trading-book positions.

Example sentences

  1. The committee reviewed interest rate risk in the banking book after deposit rates rose.

    Deposit repricing can change earnings on the banking balance sheet.

  2. Long fixed-rate loans increased interest rate risk in the banking book.

    Fixed cash flows can lose economic value when discount rates rise.

Common collocations

  • measure interest rate risk in the banking book
  • IRRBB framework
  • market riskThe risk of losses caused by changes in market prices, such as interest rates, exchange rates, share prices and commodity prices.
  • treasuryThe department of a bank or company that manages its cash, liquidity, funding, foreign exchange and interest rate risk; also the government ministry in charge of public money.

More terms: Risk Management

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This page explains English vocabulary for learners. It is not financial advice.