BANK 8.1.6 Assumptions and adjustments

(1) A banking business firm must not use an assumption or adjustment relating to the firm’s exposure to IRRBB unless the assumption or adjustment has been approved by its governing body, or a relevant committee of its governing body.
(2) The Regulatory Authority may require a firm to seek the authority’s approval before using an assumption or adjustment.
(3) If required to do so by the authority, the firm must demonstrate how the firm used an assumption or adjustment (whether or not the authority required the assumption or adjustment to be approved).
Derived from QFCRA RM/2014-2 (as from 1st January 2015).