Banking (prudential standard) determination No. 15 of 2022 (Cth)

Banking (prudential standard) determination No. 15 of 2022

Prudential Standard APS 221 Large Exposures

Banking Act 1959

I, Renée Roberts, a delegate of APRA:

(a) under subsection 11AF(3) of the Banking Act 1959 (the Act) REVOKE Banking (prudential standard) determination No. 4 of 2019, including Prudential Standard APS 221 Large Exposures, made under that determination; and

(b) under subsection 11AF(1) of the Act DETERMINE Prudential Standard APS 221 Large Exposures, in the form set out in the schedule, which applies to all ADIs and authorised NOHCs to the extent provided in paragraphs 2 to 5 of the prudential standard.

This instrument commences on 1 January 2023.

Dated: 1 December 2022

[Signed]

Renée Roberts Executive Director Policy and Advice Division

Interpretation

In this instrument:

APRA means the Australian Prudential Regulation Authority.

ADI and authorised NOHC have their respective meanings given in section 5 of the Act.

Schedule Prudential Standard APS 221 Large Exposures comprises the document commencing on the following page.

Prudential Standard APS 221

Large Exposures Objectives and key requirements of this Prudential Standard This Prudential Standard requires authorised deposit-taking institutions to implement prudent measures and to set prudent limits to monitor and control their large exposures and risk concentrations. The key requirements of this Prudential Standard are that an authorised deposit-taking institution must: * have a Board-approved policy that governs its large exposures and risk concentrations; * have adequate systems and controls to identify, measure, monitor and report large exposures and risk concentrations; * identify connected counterparties; * ensure its large exposures meet the large exposure limits; and * measure exposure values for large exposure purposes using specified treatments.