Information on how we approach prudential supervision of regulated entities.
Our approach to supervision is set out in the Statement of Prudential Policy.
Statement of Prudential Policy
We supervise regulated:
We also regulate and license non-bank deposit takers (NBDTs) and work with trustee companies that supervise NBDTs compliance with their trust deeds.
We take a risk-based approach to our supervision activities that is proportionate, collaborative and consistent. We have a low-risk appetite for outcomes that could harm the health of the financial system, undermine economic wellbeing and affect public confidence.
We aim to promote a sound, competitive and diverse financial system where market participants can make informed choices about risk. We encourage and incentivise sound management of institutions by directors and managers. In the event of major difficulties at a regulated entity, we aim to minimise the impact of those difficulties on the wider economy, the financial system and on depositors and policyholders.
We are proactive, open and constructive in engaging with industry and stakeholders. We develop and maintain a good working knowledge of our regulated entities and of the risks they are managing.
We work closely with:
Our relationship charter with regulated entities