FINMA consults on revised bank interest rate risk requirements

What happened

The Swiss Financial Market Supervisory Authority (FINMA) opened a consultation on 4 November 2026 on a partial revision of Circular 2019/2, “Interest rate risks – banks”. The consultation runs until 15 January 2027.

According to FINMA, the revision incorporates the latest shocks used to measure interest rate risks in the banking book, which the Basel Committee recalibrated in July 2024. It also implements findings from FINMA’s ex-post evaluation of the circular, published on 26 November 2025.

The regulator said the proposed changes reflect its updated supervisory practice for how banks measure, manage, monitor and control interest rate risks in the banking book.

Why it matters

A particular focus is the effect of interest rate risks on banks’ revenues. FINMA said the revised circular takes greater account of that exposure, making revenue effects an explicit point of attention alongside the updated measurement shocks.

For banks, the consultation therefore concerns both the shocks used in risk measurement and the supervisory requirements governing their handling of interest rate risk. It is not solely an update to measurement inputs: FINMA also identifies management, monitoring and control as areas covered by its updated practice.

Context / What to watch

The proposal brings together two distinct strands of work: the Basel Committee’s July 2024 recalibration and FINMA’s subsequent evaluation of its own circular. The consultation provides the next step towards incorporating both into the Swiss supervisory framework.

The announcement concerns a partial revision rather than a replacement of the circular. It does not state an effective date for the changes. The immediate milestone is the consultation deadline of 15 January 2027; the requirements remain at the consultation stage.