The Australian Prudential Regulation Authority (APRA) has released its response to its July 2024 consultation on the remaking of Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (Advanced ADIs), which is due to sunset on 1 April 2025.
APRA received no submissions to its proposal to remake the standard. In response, APRA has now remade the standard as a transitional measure so that it will continue to apply after 1 April 2025 until Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book is effective on 1 October 2025.
APRA has remade the standard without amendment, except for a consequential change to update a reference to Prudential Standard APS 001 Definitions which has been replaced by Prudential Standard CPS 001 Defined terms.
The remade standard can be found at: Interest Rate Risk in the Banking Book.
