Back Custom print Link Text Only Rich Text Print

  • CM-5.9 CM-5.9 Concentrations in Geographic, Economic and Market Sectors

    • CM-5.9.1

      The extent to which a bank may be prudently exposed to a particular geographic, economic and market sector will vary considerably depending upon the characteristics and strategy of the bank, and the sector concerned.

      Amended: January 2011
      October 2007

    • CM-5.9.2

      Concentrations should also be recognised in not just geographic and economic sectors, but also in markets (e.g. individual stock exchanges). The CBB will not apply common maximum percentages to banks' sectoral or market exposures but, instead, will continue to monitor such exposures on an individual and general basis.

      Amended: January 2011
      October 2007

    • CM-5.9.3

      Banks must specify in their policy statements how they define geographic, economic and market sectors, and what limits apply to differing sectors.

      Amended: January 2011
      October 2007

    • CM-5.9.4

      Exposures and limits for sectors must be reviewed at least quarterly by the Board of Directors.

      Amended: July 2011
      October 2007

    • CM-5.9.5

      Banks which have over 10% of their risk-adjusted assets in market risk (i.e. the trading book) must also set market risk concentration limits.

      October 07