Regulatory Alerts2012-03-22
Pledging Assets of a Banking Corporation
The Supervisor of Banks issued this directive to establish sound management requirements for pledged assets, replacing previous quantitative limitations with principles-based governance. Banking corporations must ensure that pledging activities do not significantly impair their ability to raise funding or protect depositor rights, while maintaining robust internal controls and risk management frameworks. The directive mandates specific corporate governance structures, including board-approved policies and detailed reporting mechanisms, and officially takes effect on January 1, 2022.
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