Regulatory AlertsAPG 220 Credit Risk Management
The Australian Prudential Regulation Authority issued APG 220 to provide guidance on sound credit risk management practices for authorised deposit-taking institutions under Prudential Standard APS 220. The guide requires ADIs to implement comprehensive frameworks including credit risk appetite statements, internal limits, and robust origination processes that account for borrower serviceability and third-party risks. It further mandates rigorous assessment criteria for individual and corporate exposures, emphasizing independent oversight, stress testing, and the management of non-performing loans to ensure financial stability.
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