🇦🇺Australia

IRRBB Capital Charge Overruns

1 verified sources

Definition

APRA requires quarterly updates to IRRBB observation periods, increasing operational burden compared to annual proposals, leading to higher compliance costs for savings institutions.

Key Findings

  • Financial Impact: 20-50 hours/quarter per institution on computations; additional capital holdings of 1-5% of risk-weighted assets
  • Frequency: Quarterly
  • Root Cause: Manual or semi-manual quarterly IRRBB data processing and capital recalculations

Why This Matters

Savings Institutions in Australia waste 20-50 hours/quarter on IRRBB calculations. Automation of observation period updates and stress testing eliminates this operational burden.

Affected Stakeholders

Treasury Manager, Risk Officer, CFO

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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