And that caused a rewrite of the definitions to some extent?

If you think about sort of the broader applicability of that situation.

It effectively reflected the new resolution regimes that were coming in for banks.

So in Europe, we have the resolution regime called the Bank Recovery and Resolution Directive.

These resolution regimes are seen as the new way to deal with banks that fail.

So rather than having bailouts where the government goes in and injects capital to solve a problem bank.

Now the idea is very much that when a bank fails, its capital instruments have to be written down to zero.

was appropriate for the

So Roopesh, over to you, and let's get going.

Thanks very much, David.

Yeah, so I, I guess to begin with, it, it, it's probably helpful to give everyone, um, an overview of just what we mean by interest rate risk in the banking book and, and why it's important.

So, you know, essentially when we look at interest rate risk in the banking book, we are talking about the two channels, you know, of impact on the bank.

One is through net interest income.

How does the bank's net interest income change as interest rates move? And the second is how does the bank's economic value of equity, or EVE as we call it, change as interest rates change? Um, and that second one, the, the EVE measure, um, you know, probably requires a little bit more clarification as to what we mean by that.

So, you know, essentially, uh, you know, with, we're there talking about what is the present value of cash flows coming from assets, liabilities, and the off balance sheet.

Okay.