Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Connected Exposures Policy BS8
The Reserve Bank of New Zealand issued document BS8 to establish standard registration conditions for locally incorporated banks regarding exposures to connected persons. The policy mandates that capital nature advances be deducted from Tier 1 capital and restricts aggregate credit exposures to rating-contingent limits based on the bank's credit rating. It further defines connected persons, substantial interests, and credit exposures while prohibiting lending terms that are more favorable than those offered to non-connected persons.
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