Regulatory Alerts2019-01-01
Recommendation B regarding the limitation of investment risk in banks
The Financial Supervision Commission (KNF) issued an amended Recommendation B in March 2019 to establish good practices for managing investment risks in banks, explicitly including real estate investments while excluding derivative instruments. The document mandates that bank management and supervisory boards implement integrated investment strategies and policies, ensuring adequate organizational structures, qualified personnel, and robust internal control systems. It requires significant banks to establish an Investment Policy Committee and detailed risk measurement processes, with full implementation required by December 31, 2019.
Share