256. When analysing the impact on the institution’s earnings, competent authorities should be aware …

When analysing the impact on the institution’s earnings, competent authorities should be aware of how much the institution’s returns depend on interest rate-sensitive positions, and they should determine how different changes in interest rates would affect the institution’s net interest income, as well as determining the effects of changes in the market value of instruments – depending on accounting treatment – either shown in the profit and loss (P&L) account or directly in equity (e.g. via other comprehensive income).

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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