Regulatory Alerts2022-05-11
BS11: Outsourcing Policy for Registered Banks
The Reserve Bank of New Zealand issued this policy to regulate outsourcing arrangements by registered banks, ensuring financial system stability and the continuity of basic banking services. It mandates that large banks maintain robust back-up capabilities for functions outsourced to overseas related parties, including strict timeframes for switching to backups and annual testing. Banks must obtain non-objection from the Reserve Bank for most outsourcing contracts, while specific functions are exempted via a white list or pre-approved list.
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