2026-06-24
Added · Updated
The Australian Prudential Regulation Authority issued Prudential Standard APS 222 to require authorized deposit-taking institutions to identify, monitor, and control contagion and step-in risks arising from their associations with related entities. The standard mandates board-approved policies governing these dealings, imposes strict exposure limits based on Common Equity Tier 1 Capital, and prohibits unlimited exposures or cross-default provisions. Additionally, it enforces rigorous notification and approval requirements for significant transactions, group badging disclosures, and the provision of support to ensure financial stability.
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