RBNZ releases outsourcing policy for banks

The Reserve Bank of New Zealand on Wednesday published its finalised policy on the requirements which will apply to large New Zealand banks that have entered into outsourcing arrangements.

The final policy follows consideration of comments on a draft policy issued in October 2005.

Reserve Bank Deputy Governor Adrian Orr said: "While outsourcing of banks' business functions is increasingly common and often a sensible business practice, it can expose banks and the financial system to new or incr