In order to strengthen the ability of domestic banks to withstand the risks associated with the possibility of sharp interest rate volatility, and to bring Taiwan more closely in line with international practices, the FSC on 6 August 2020 asked the ROC Bankers Association inform domestic banks that they will be expected to comply with “The Standard of Interest Rate Risk in Banking Book (IRRBB)” issued by the Basel Committee on Banking Supervision (BCBS) in April 2016. The IRRBB is a part of Pillar 2 of the Basel capital framework, so beginning from 2022, when banks report information related to the Pillar 2 supervisory review process, they will be required at the same time to report the 9 qualitative principles they use to control IRRBB (including measurement methods, governance framework, risk appetite controls, and information systems management) as well as 2 quantitative principles (year-on-year changes each quarter in net interest rate income and economic value of equity).