Regulatory AlertsAPS 220 Credit Risk Management
The Australian Prudential Regulation Authority issued Prudential Standard APS 220 to require authorized deposit-taking institutions to implement a credit risk management framework appropriate to their size, business mix, and complexity. The standard mandates that institutions maintain specific strategies, policies, and procedures to identify, measure, monitor, and control credit risk across the full credit life-cycle, including robust assessment criteria and provisions for problem exposures. It further delineates the responsibilities of the Board and senior management, sets requirements for credit risk appetite and strategy, and establishes detailed guidelines for credit origination, assessment, and the management of large exposures and country risk.