Regulatory Alerts2024-06-26
BPR160 Insurance, Securitisation, and Loan Transfers
The Reserve Bank of New Zealand issued BPR160 to mandate capital ratio adjustments for banks involved in funds management, securitisation, and affiliated insurance business. The document requires banks to consolidate specific special purpose vehicles or deduct exposures from CET1 capital when minimum separation and arm's length conditions are not met. It further establishes criteria for 'clean transfers' that allow banks to exclude transferred loans from risk-weighted asset calculations.
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