Consolidation
CA-1.3.15
Both credit risk and market risk capital requirements will apply on a worldwide consolidated basis. Only a bank which is running a global consolidated book may apply the offsetting rules contained in the remainder of these regulations, on a consolidated basis with the prior written agreement of the Central Bank. However, where it would not be prudent to offset or net positions within the group as, for example, where there are obstacles to the quick repatriation of profits from a foreign subsidiary or where there are legal and procedural difficulties in carrying out the timely management of risks on a consolidated basis, the Central Bank will require the bank to take individual positions into account without any offsetting.
October 07CA-1.3.16
Notwithstanding that the market risk capital requirements will apply on a worldwide consolidated basis, the Central Bank retains the right to monitor the market risks of banks on a non-consolidated basis to ensure that significant imbalances within a group do not escape supervision. The Central Bank will be particularly vigilant to ensure that banks do not pass positions on reporting dates in such a way as to escape measurement.
October 07
