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  • CA-1.2 CA-1.2 Monitoring of Risks

    • CA-1.2.1

      Banks are required to manage their risks, especially market risk, in such a way that the capital requirements are being met on a continuous basis, i.e. at the close of each business day and not merely at the end of each calendar quarter. Banks are also required to maintain strict risk management systems to ensure that their intra-day exposures are not excessive.

      Apr 08

    • CA-1.2.2

      Banks' daily compliance with the capital requirements for credit and market risk must be verified by the independent risk management department and the internal auditor. It is expected that the external auditors will perform appropriate tests of the banks' daily compliance with the capital requirements for credit and market risk. Where a bank fails to meet the minimum capital requirements for credit and market risk on any business day, the CBB must be informed in writing by no later than the following business day. The CBB will then seek to ensure that the bank takes immediate measures to rectify the situation.

      Apr 08