EBA launches public consultation on the amending ITS on supervisory reporting to introduce new IRRBB reporting

The European Banking Authority (EBA) launched a public consultation on its draft Implementing Technical Standards (ITS) on supervisory reporting with respect to IRRBB.
The consultation paper suggests updated, standardized reporting guidelines for the evaluation and oversight of Interest Rate Risk in the Banking Book (IRRBB).
Through these draft amending reporting ITS, which give supervisors the right information to monitor IRRBB risks like changes in policy rates and the identification of outliers within both:
1. the Supervisory Outlier Test (SOT) on Economic Value of Equity; and
2. the Supervisory Outlier Test (SOT) on Net Interest Income,
a detailed monitoring of the implementation of the IRRBB package released by the EBA in October 2022 (eventid=18009) shall be carried out. The reporting package under consultation is especially pertinent given the current situation of high inflation and rising interest rates. This new reporting will give supervisors the information they need to keep an eye on IRRBB risks in credit institutions while carefully considering the proportionality principle. The consultation document asks for particular feedback on proportionality for medium institutions and gives streamlined templates for reporting by small and non-complex institutions (SNCIs).