Regulatory Alerts2022-02-27
Outsourcing policy for large New Zealand banks
The Reserve Bank of New Zealand issued the BS11 outsourcing policy to ensure large New Zealand-incorporated registered banks maintain the legal and practical ability to control outsourced functions. The policy requires these institutions to demonstrate they can continue critical operations, such as clearing, settlement, and basic banking services, in the event of a failure or separation from a foreign parent. This framework aims to minimize systemic economic impact and preserve resolution options by mandating robust contingency planning and data accessibility for statutory managers.
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