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.