As part of its ongoing efforts to address international bank supervisory issues, the Basel Committee on Banking Supervision (the Committee) issued a paper on principles for the management of interest rate risk in September 1997. In developing these principles, the Committee drew on supervisory guidance in member countries, on the comments of the banking industry on the Committee's earlier paper, issued for consultation in April 1993 , and on comments received on the draft paper issued for consultation. In addition, the paper incorporated many of the principles contained in the guidance issued by the Committee for derivatives activities, which are reflected in the qualitative parameters for model users in the capital standards for market risk (Market Risk Amendment).
This revised version of the 1997 paper was released for public consultation in January 2001 and September 2003 , and is being issued to support the Pillar 2 approach to interest rate risk in the banking book in the new capital framework. The revision is reflected especially in the Summary, in Principles 12 to 15, and in Annexes 3 and 4.