Regulatory Alerts2023-08-24
Reserve Bank of New Zealand BS8 Connected Exposures Regulatory Impact Assessment
The Reserve Bank of New Zealand has finalized revisions to the Connected Exposures Policy (BS8) to resolve ambiguities and align with international standards. The updated requirements remove the aggregate gross exposure limit, retain net exposure limits based on credit ratings, and expand the definition of connected persons to address IMF recommendations. These changes aim to improve regulatory consistency, simplify compliance for banks, and mitigate risks to financial stability arising from conflicts of interest and concentrated exposures.
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