24 August 2023
We have published the outcome of the final consultation stages for the Exposure Draft of the Connected Exposures policy. We have also published a Regulatory Impact Assessment and a Response to Submissions.
Stakeholders were generally supportive of the changes included in the Exposure Draft. Some stakeholders suggested changes to improve workability and clarity, especially regarding definitions of connected persons. Most of these changes have been incorporated into the revised policy.
We have decided to retain the ‘BS8’ title for the revised policy rather than changing this to BPR210, as originally proposed. This minimises the need for consequential changes to other policy documents.
Links to the documents are available below.
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 - now closed
We invited interested parties to submit comments on any technical or workability issues in the Exposure Draft to [email protected] by 8 March 2023.
After this review, the current Connected Exposures policy (BS8) will be integrated into the Banking Prudential Requirements (BPR) documents. Its title will be ‘BPR210: 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 - now closed
We invited 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.