Recent Development
The Banking Regulatory and Supervisory Authority (the “BRSA“) published on March 16, 2020 a press release (the “Press Release“) concerning banks’ business continuity plans due to concerns over the stability of the financial markets in response to the COVID-19 pandemic.
Content of the Press Release
In order to mitigate the impacts of the COVID-19 outbreak on the financial markets, the BRSA will re-inspect banks’ business continuity plans.
Pursuant to the Guide on the Management of Operational Risks, banks must establish a business continuity plan in order to ensure the continuity of operations during material business interruptions. Business continuity plans must incorporate emergency plan strategies, recovery-restart procedures, and communication plans in order to inform management, personnel, legal authorities, customers, service providers and civil authorities.
Business continuity plans aim to prevent any halt in operations and mitigate possible losses due to material business interruptions. The BRSA annually reviews these plans, pursuant to the Regulation on the Procedures and Principles of Audits Conducted by the Banking Regulatory and Supervisory Authority.
In that regard, the BRSA decided to re-inspect banks’ routinely-established business continuity plans and stated that it would take the necessary measures in response to the COVID-19 pandemic.
