CM-4.4.5

Past version: Effective from 01 Jan 2015 to 31 Mar 2015
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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 limit below, in respect of the reporting bank's consolidated Total Capital without the prior written approval of the CBB. Where such limit has been exceeded whether with or without the prior approval of the CBB, the excess amount must be risk-weighted at 800%. The following single exposurelimit applies:

Direct exposures (i.e. funded, unfunded on and off balance sheet): 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 Total Capital 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).

Amended: January 2015
Amended: January 2011
October 2007