(1) Institutions shall -

(a) implement internal systems,

(b) use the standardised methodology, or

(c) use the simplified standardised methodology,

to identify, evaluate, manage and mitigate the risks arising from potential changes in interest rates that affect both the economic value of equity and the net interest income of an institution's non-trading book activities.

(2) Institutions shall implement systems to assess and monitor the risks arising from potential changes in credit spreads that affect both the economic value of equity and the net interest income of an institution's non-trading book activities.

(3) The Bank may require an institution to use the standardised methodology referred to in paragraph (1) where the internal systems implemented by that institution for the purpose of evaluating the risks referred to in that paragraph are not satisfactory.