Exposure Draft and submissions
24 January 2023
We are publishing 3 documents relating to the Review of the Connected Exposures Policy:
We intend to progress with the proposals from our November 2021 Consultation Paper, with some amendments following stakeholder feedback. The rationale for these changes is set out in the Response to Submissions statement, and the specific wording for the proposed requirements is set out in the Exposure Draft. The requirements will be finalised after we receive comments on any technical or workability issues in the Exposure Draft.
How to make a submission
We invite interested parties to submit comments on any technical or workability issues in the Exposure Draft to [email protected] by 8 March 2023.
The current Connected Exposures Policy (BS8) will be integrated into the Banking Prudential Requirements (BPR) documents after this review. Its title will be ‘BPR210: Connected Exposures Policy'.
Review of the Connected Exposures policy
29 November 2021
We have commenced a review of the Connected Exposures policy.
We are reviewing our connected exposures policy for locally incorporated banks.
The review is partly routine as well as a response to requests to resolve ambiguities in the wording of the current policy. The key proposals are to align the Connected Exposures Policy with the existing capital adequacy framework and to respond to a recommendation from the International Monetary Fund’s Financial Sector Assessment Programme (FSAP) review in 2017.
The consultation paper sets out the problem definition of the review, our proposals, and some questions and information requests. We are seeking feedback from industry and the public on our proposals.
Depending on the feedback received, if necessary the Reserve Bank may hold another round of targeted consultation in Q2 2022. The new policy is intended to apply from Q3 2022.
How to make a submission
We invite submissions on this Consultation Paper by 31 March 2022.
Please note the disclosure on the publication of submissions detailed in the consultation document.
Address submissions and enquiries to [email protected] with subject line: BS8 Consultation November 2021.
The Connected Exposures Policy currently in-force
The Connected Exposures Policy issued October 2021 (PDF 244KB)