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  • Closely Related Counterparties — Definitions

    • CM-5.5.5

      'Closely related counterparties' are two or more counterparties who constitute a single risk because one of them has, directly or indirectly, a controlling interest in the other(s) (i.e. 20% or more voting rights), or counterparties connected in such a way that the financial soundness of any one of them may affect the financial soundness of the other(s), or the same factors may affect the financial soundness of both or all of them.

      Amended: January 2011
      October 07

    • CM-5.5.5A

      The CBB shall exercise its discretion in considering two or more counterparties of a bank as closely related on a case by case basis if it finds during its onsite or offsite supervisory review any linkage of such counterparties.

      Added: January 2017

    • CM-5.5.6

      'Controlling interest' means either significant ownership (i.e. 20% or more of the voting rights) or any other interests (including, but not limited to, the ability to exercise or control the exercising of voting power in the other party) which enable the holder, or which would enable a proposed transferee, thereof to exercise significant influence over the management and business of the other party.

      Amended: July 2012
      Amended: January 2011
      October 2007