10 Questions
What is the abbreviation used for Interest Rate Risk in the Banking Book?
IRRBB
According to the CBUAE Standards on IRRBB, how should interest rate risk be captured?
Through changes in both expected earnings and the economic value of the balance sheet
What is the name of the standards articulated by the Basel Committee on Banking Supervision in April 2016 related to interest rate risk in the banking book?
Basel Standards on IRRBB
What does MMG provide guidance on related to IRRBB?
Modelling
What is the scope of the CBUAE Standards on IRRBB?
Both interest rate risk (for conventional products) and profit rate risk (for Islamic products)
What is the minimum set of metrics that should be computed to capture changes in expected earnings and economic value, as per the CBUAE Standards on IRRBB?
IRRBB metrics
What is the definition of gap risk in the context of interest rate risk in the banking book?
The difference between future cash in-flows and cash-outflows
What should be included in the model documentation and verified by the finance team on a yearly basis, as per the CBUAE Standards on IRRBB?
Exposure reconciliation process
Which of the following is NOT included in the positions to be identified in interest sensitive instruments, as per the CBUAE Standards on IRRBB?
Remunerated deposits
What should differences in exposures against general ledger and published financials be documented as, as per the CBUAE Standards on IRRBB?
Valid reasons
Test your knowledge on Interest Rate Risk in the Banking Book (IRRBB) with this quiz. Explore the scope and technical considerations related to interest rate risk for both conventional and Islamic products. Perfect for banking professionals and finance enthusiasts.
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