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  • CA-1.1 CA-1.1 Introduction

    • CA-1.1.1

      All locally incorporated banks are required to measure and apply capital charges in respect of their credit and market risk capital requirements.

      October 07

    • CA-1.1.2

      Credit risk is defined as the potential that a bank's borrower or counterparty will fail to meet its obligations in accordance with agreed terms. Credit risk exists throughout the activities of a bank in the banking book and in the trading book including both on- and off-balance-sheet exposures.

      October 07

    • CA-1.1.3

      Market risk is defined as the risk of losses in on- or off-balance-sheet positions arising from movements in market prices. The risks subject to the capital requirement of this Module are:

      (a) The risks pertaining to interest rate related instruments and equities in the trading book: and
      (b) Foreign exchange and commodities risks throughout the bank.
      October 07