BS11 is designed to manage risks that could arise when banks outsource certain functions to third party providers. For wholly owned subsidiaries, this includes their parent bank, says Director of Prudential Supervision, Scott McKinnon. Common examples of outsourced activities include IT processing, accounting and call centres. “Our four major banks are subsidiaries of offshore banking groups, which creates particular risks that we need to manage. Our outsourcing policy is designed to protect financial stability and customers by ensuring major New Zealand banks can continue to operate in the unlikely event they have ... (full story)