Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Connected Exposures Policy (BS8)
The Reserve Bank of New Zealand issued document BS8 to establish standard registration conditions for locally incorporated banks regarding exposures to connected persons. The policy mandates that aggregate credit exposures to connected persons must not exceed a rating-contingent limit based on the bank's credit rating, with capital nature advances deducted from Tier 1 capital. Additionally, the Reserve Bank reserves the right to impose non-standard conditions and requires that all connected exposures be offered on terms no more favorable than those given to non-connected persons.
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