Risk management requirements are set out in sections 27-29 of the Non-bank Deposit Takers Act 2013 (the Act). A licensed NBDT must have a written risk management programme that outlines how it will identify and manage its credit, liquidity, market and operational risk.
Risk management requirement
All licensed NBDTs are required to have a risk management programme that is appropriate to its operations, taking into account the size of the NBDT, its funding structure and market sector. The programme must be sufficiently documented and must contain procedures for its regular review.
This programme is to be submitted to, and approved by, the NBDT's trustee. Trustees can seek to have a current risk management programme reviewed.
The Reserve Bank has published risk management programme guidelines on the risk management requirements.