Regulatory Alerts2002-12-20
Recommendation B on Limiting the Risk of Banks' Financial Investments
The National Bank of Poland and the Banking Supervision Commission issued Recommendation B to establish comprehensive guidelines for banks managing financial investment risks. The document mandates that banks maintain written, board-approved investment strategies, ensure proper portfolio diversification, and implement rigorous internal controls and monitoring systems. It further requires strict oversight of large concentrations, outsourcing arrangements, and regular independent audits to safeguard depositor funds and institutional stability.
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