Regulatory Alerts2022-02-27
Added · Updated
Connected exposures policy for banks
The New Zealand Prudential Regulator imposes limits on credit exposures that New Zealand-incorporated registered banks have to their connected persons. Aggregate exposures to non-bank connected persons are capped at 15% of tier 1 capital, while total exposures to all connected persons face rating-contingent limits ranging from 15% to 75% of tier 1 capital. These requirements are defined within the October 2023 Connected Exposures Policy (BS8) which the regulator is currently reviewing.