EFRAG Releases Findings from Survey on Dynamic Interest Rate Risk Management Practices
Over 40 stakeholders responded to the survey conducted by EFRAG to collect input on current practices and capabilities in dynamic interest rate risk management among banks, insurers, financial conglomerates, and other entities. This initiative, launched in May 2025, is part of the preparations for the IASB’s forthcoming Dynamic Risk Management (’DRM’) model.
Highlights from the banking sector
Among the banking respondents, 92% manage interest rate risk dynamically, mostly at both group and subsidiary level. Over a third manage more than ten benchmark rates. Interest rate swaps are the most common instrument, alongside cross-currency swaps and non-linear derivatives. Field testing of the DRM model is still undecided for nearly half of respondents.
Highlights from the insurance sector
Among insurance and financial conglomerate respondents, interest rate risk management is important for profitability and long-term policyholder obligations. Around 47% of insurers manage interest rate risk dynamically, with over half of them managing at both group and subsidiary level. 76% of both insurers and financial conglomerates are looking for a robust solutions rather than targeted improvements to IFRS 9 Financial Instruments and IFRS 17 Insurance Contracts.
Full survey findings are available in the report below.
Next steps
The findings will inform EFRAG’s draft comment letter in response to the upcoming IASB's Exposure Draft ('ED') on DRM.
A second survey, which will focus more on the technical aspects of the proposed DRM model, is planned to be launched following the publication of the ED, currently expected in December 2025.