Regulatory Alerts2017-03-30
Foreign Exchange Risk Management Guidance for Deposit Takers
The Isle of Man Financial Services Authority issues this guidance to require deposit takers and branches to implement prudent foreign exchange risk management policies and systems. The document mandates that banks identify, measure, and monitor risks such as exchange rate, interest rate, and settlement exposures through defined net open position calculations and regular stress testing. It further specifies operational requirements including Board-approved policies, daily reporting, and adherence to capital adequacy weightings for open positions.
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