Banking (prudential standard) determination No. 16 of 2007 - Prudential Standard APS 222 - Associations with Related Entities
Objective and key requirements of this PObjective and key requirements of this Prudential Standard
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Objective and key requirements of this Prudential Standard
This Prudential Standard aims to ensure that authorised deposit-taking institutions give due consideration to the risks associated with the corporate group of which they are a member and are not exposed to excessive risk as a result of their associations and dealings with related entities.
The key requirements of this Prudential Standard are that an authorised deposit-taking institution must:
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monitor potential contagion risk between the institution and other members of a conglomerate group of which the institution is a part;
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meet minimum requirements with respect to group risk management, dealings with related entities and certain related matters; and
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adhere to prudential limits on intra-group exposures.