Tuesday , October 24 2017
Home / RBNZ / Reserve Bank introduces revised outsourcing policy

Reserve Bank introduces revised outsourcing policy

Summary:
Release date 20 September 2017 The Reserve Bank today published a revised outsourcing policy for large banks. “The revised policy aims to ensure that a bank can continue to operate in a situation where a key service provider fails,” Deputy Governor Grant Spencer said. The revision of the outsourcing policy follows a review by the Reserve Bank, which concluded that greater clarity of the policy and more consistency of application by banks would be desirable to ensure that they can continue to provide required services in times of stress. “The revised policy sets requirements that banks need to meet when outsourcing particular functions and services, especially if the service provider is a related party of the bank. “An ongoing ability by banks to provide

Topics:
Reserve Bank of New Zealand News Releases considers the following as important:

This could be interesting, too:

Bank of Japan writes Bank of Japan Accounts (October 20)

FRED Blog writes Crowds in the air : Graphing airfares and passenger load factors

Swiss National Bank writes 2017-10-23 – Press release – Important monetary policy data for the week ending 20 October 2017

Amol Agrawal writes Suggestion from Catholic Social Services Australia: Central Bank Boards have a ‘representative of the poor’…

Release date

20 September 2017

The Reserve Bank today published a revised outsourcing policy for large banks.

“The revised policy aims to ensure that a bank can continue to operate in a situation where a key service provider fails,” Deputy Governor Grant Spencer said.

The revision of the outsourcing policy follows a review by the Reserve Bank, which concluded that greater clarity of the policy and more consistency of application by banks would be desirable to ensure that they can continue to provide required services in times of stress.

“The revised policy sets requirements that banks need to meet when outsourcing particular functions and services, especially if the service provider is a related party of the bank.

“An ongoing ability by banks to provide liquidity and basic services to customers, even in times of stress, is an important part of maintaining a sound and efficient financial system,” Mr Spencer said.

Under the revised policy, banks are required to ensure that a range of resolution options, including open bank resolution, are available in the unlikely event of a bank failure. This supports financial stability in times of stress.

It applies to locally-incorporated registered banks with net liabilities of more than $10 billion, and comes into force on 1 October 2017. Affected banks will have five years to come into compliance with the revised policy, which replaces an earlier policy introduced in 2006.

Mr Spencer acknowledged the constructive involvement of the banking industry and other interested parties who were actively engaged during the development of the revised policy.

“Our engagement with the banking industry and others has been instrumental in helping to minimise costs to the banking industry while still ensuring that the key objectives of the revised policy are clearly understood and achievable.”

He said the Reserve Bank would work with banks to ensure a practical path to compliance with the policy within the five year deadline.

More information

Media Contact:
Angus Barclay, External Communications Adviser
Ph 04 471 3698 or 027 337 1102. [email protected]

Reserve Bank of New Zealand News Releases
The Reserve Bank of New Zealand is New Zealand’s central bank. We promote a sound and dynamic monetary and financial system.

Leave a Reply

Your email address will not be published. Required fields are marked *