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IRRBB Management in Emerging Market and Developing Economies: The Role of Derivatives in Supporting Financial Stability and Economic Development

Research
Research February 9, 2026
< 1  min.read

Interest rate risk in the banking book (IRRBB) has become a growing priority for banks and regulators in emerging market and developing economies (EMDEs). As many of these countries face monetary tightening cycles and ongoing macroeconomic volatility, bank balance sheets have become more sensitive to interest rate movements, exposing limitations in traditional balance- sheet- based risk management approaches.

This paper argues that building more effective IRRBB management frameworks supported by well-functioning IRD markets is both a financial stability priority and a foundation for sustainable economic progress in EMDEs.

Click on the PDF to read the full paper.

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Documents (1) for IRRBB Management in Emerging Market and Developing Economies: The Role of Derivatives in Supporting Financial Stability and Economic Development

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