Regulatory Alerts2006-01-29
Reserve Bank of New Zealand Outsourcing Policy BS11
The Reserve Bank of New Zealand issues Policy BS11 to require Large Banks to maintain legal and practical ability to control and execute outsourced functions. This mandate ensures that core banking operations, such as clearing and settlement, remain uninterrupted during provider failures to protect financial system stability. The policy outlines specific risk tolerances and mandates robust contractual mitigants for time-critical functions to prevent significant damage to the economy.
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