Guidelines on the Management of Interest Rate Risk in the Banking Book of Commercial Banks (Revised)

Guidelines on the Management of Interest Rate Risk in the Banking Book of Commercial Banks (Revised)
Guidelines on the Management of Interest Rate Risk in the Banking Book of Commercial Banks (Revised)

May 30, 2018

Chapter I General Provisions

Article 1 The Guidelines are hereby formulated in accordance with the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks and other relevant laws and regulations to strengthen the management of interest rate risk in the banking book of commercial banks and maintain the secure and steady operation of the banking system.

Article 2 These Guidelines apply to commercial banks incorporated as a legal person status in the People's Republic of China in accordance with the law.

Article 3 For the purpose of these Guidelines, the interest rate risk in the banking book refers to the risk of losses of the economic value of the banking book and the overall profit arising from detrimental changes in the interest rate level and the term structure, mainly including gap risk, basis risk and optional risk.
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