Regulatory AlertsAPS 221 Large Exposures
The Australian Prudential Regulation Authority issued Prudential Standard APS 221 to require authorised deposit-taking institutions to implement prudent measures and limits for monitoring large exposures and risk concentrations. The standard mandates Board-approved policies, robust systems for identifying connected counterparties, and adherence to strict exposure limits relative to Common Equity Tier 1 Capital. It further establishes specific notification and approval requirements for exceeding these limits and grants APRA powers to impose higher capital requirements or risk weights for significant risk concentrations.
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