CM-4.4.5

Past version: Effective from 01 Jan 2011 to 31 Dec 2014
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A bank may not incur an exposure to an individual counterparty or group of closely related counterparties (not connected to the reporting bank) which exceeds the limits as stated in (a), (b), and (c) below, in respect of the reporting bank's (consolidated) capital base without the prior written approval of the CBB. The following single exposure limits apply:

(a) Direct exposures (i.e. funded on and off balance sheet excluding Restricted Investment Accounts): A bank may not incur an exposure to an individual counterparty or group of closely related counterparties which exceeds 15% of the reporting bank's (consolidated) capital base without the prior written approval of the CBB. For this purpose, companies/banks with variable capital should not include participation shares in calculating their capital base, since there are governed by Mudaraba contract (profit sharing).
(b) Restricted investment accounts: A bank may not incur an exposure to an individual counterparty or group of closely related counterparties where the exposure is funded by restricted investment accounts, which exceeds 30% of the reporting bank's (consolidated) capital base.
(c) The combined exposures: A combined exposure of (a)&(b) above (funded by on balance sheet funds and restricted investment accounts) to an individual counterparty or group of closely related parties may not exceed 35% of the reporting bank's (consolidated) capital base.
Amended: January 2011
October 2007