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  • CA-A.2 CA-A.2 Purpose

    • CA-A.2.1

      The purpose of this module is to set out the Agency's capital adequacy regulations and provide guidance on the risk measurement for the calculation of capital requirements by locally incorporated banks.

    • CA-A.2.2

      The module also sets out the minimum gearing requirements which relevant banks (referred to in section CA-A.1) must meet as a condition of their licensing.

    • CA-A.2.3

      The Agency requires in particular that the relevant banks maintain adequate capital, in accordance with the Regulation in this module, against their risks as capital provides banks with a cushion to absorb losses without endangering customer deposits. Due to this, the Agency also requires the relevant banks to maintain adequate liquidity and identify and control their large credit exposures that might otherwise be a source of loss to a licensee on a scale that might threaten its solvency.

    • CA-A.2.4

      This module provides support for certain other parts of the Rulebook, mainly:

      (a) Licensing and Authorisation Requirements;
      (b) BMA Reporting Requirements;
      (c) Credit Risk Management;
      (d) Market Risk Management;
      (e) Operational Risk Management;
      (f) Liquidity Risk Management;
      (g) High Level Controls:
      (h) Relationship with Audit Firms; and
      (i) Penalties and Fines.