Regulatory Alerts2022-12-01
Added · Updated
APS 221 Large Exposures
The Australian Prudential Regulation Authority issued Prudential Standard APS 221 to require authorised deposit-taking institutions to monitor and control large exposures and risk concentrations. The standard mandates that institutions implement Board-approved policies, maintain adequate systems, and adhere to strict limits, including a general cap of 25 percent of Tier 1 Capital per counterparty. It further establishes detailed rules for identifying connected counterparties, measuring exposure values, and obtaining regulatory approval for breaches or significant risk concentrations.
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