The Banking Supervision Handbook - banking supervision policy documents and regulations

This page contains the handbook documents and Orders in Council setting out the details of the policy framework and rules that apply to registered banks. The information is updated from time to time.

Recent changes to the Banking Supervision Handbook

May 2021 – The Reserve Bank has published revised versions of its banking handbook documents BS13 and BS13A that set out the liquidity policy applying to registered banks. These revisions had earlier been communicated to banks and came into force on 1 May 2021. The changes introduce a new scale modifying the eligibility limits for residential mortgage backed securities as liquid assets for the purpose of calculating mismatch ratios under the policy. They also specify the treatment of the Reserve Bank’s Funding for Lending Programme and related assets for the purposes of calculations under the policy.

March 2021 – The Reserve Bank published revised versions of its working copies of the two Orders in Council that set out the disclosure requirements for registered banks. These revisions incorporate changes made by Amendment Orders that were made on 23 February 2021 and come into force on 31 March 2021. The changes introduce a materiality threshold into the disclosure of any breaches of a bank’s conditions of registration over the reporting period. Document BS7 ‘Registered bank disclosure regime – overview of Orders in Council and related documents’ has also been updated. These changes are the final step in rolling out the new approach to the Public disclosure of bank breaches.

Table of contents

Information on the handbook

Registered banks and their advisers are encouraged to make the handbook the first point of reference on specific matters relating to banking supervision. Where a matter is not addressed in the handbook, the matter should be raised with the Reserve Bank. In general, the appropriate contact person at the Reserve Bank will be the analyst responsible for the registered bank concerned.

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For other queries regarding this handbook, please email [email protected].

Accompanying documents for the outsourcing policy

Under the outsourcing policy (BS11) dated September 2017, the Reserve Bank may issue a list of exempt functions and services (the 'white list'). The Reserve Bank may also issue a List of Pre-approved Functions and Services. Banks may enter in arrangements captured on this list without requiring non-objection from the Reserve Bank but must still ensure such arrangements comply with the rest of the policy.

BS11 also allows the Reserve Bank to issue applications forms to assist banks.

Outsourcing Transitional

The 2006 version of the Outsourcing Policy has been superseded. However, any bank that was subject to the Outsourcing Policy as at 30 September 2017 will continue to have to meet any relevant requirements of the 2006 policy for a transitional period of 6 years from that date, as well as being subject to the current version of the policy referred to in the main table above.

Basel III Transitionals

These are specific (expired) versions of Banking Supervision Handbook documents that are referred to by the current versions of the same documents.