APRA Prudential Standard APS 221 Large Exposures

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.