22. When evaluating the amounts, types and distributions of internal capital pursuant to Article 73 of Directive 2013/36/EU, institutions should base the contribution of IRRBB to the overall internal capital assessment on the institution's internal measurement systems outputs, taking account of key assumptions and risk limits. The overall level of capital should be commensurate with both the institution's actual measured level of risk (including for IRRBB) and its risk appetite, and be duly documented in its report on the Internal Capital Adequacy Assessment Process (ICAAP report).

23. Institutions should demonstrate that their internal capital is commensurate with the level of IRRBB, taking into account the impact on internal capital of potential changes in the institution's economic value and future earnings resulting from changes in interest rates. Institutions are not expected to double-count their internal capital for EV and earning measures.

24. In their ICAAP analysis of the amount of internal capital required for IRRBB, institutions should consider:

(a) internal capital held for risks to economic value that could arise from adverse movements in interest rates; and

(b) internal capital needs arising from the impact of rate changes on future earnings capacity, and the resultant implications for internal capital buffer levels.