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  • Deductions from Total Capital

    • CM-5.5.13

      The CBB will closely examine all exposures to "connected counterparties" and will deduct them from the bank's consolidated Total Capital if they are, in the CBB's opinion, of the nature of a capital investment, or provision of long-term working capital, or are made on particularly concessionary terms.

      Amended: January 2015
      Amended: January 2011
      October 2007

    • CM-5.5.14

      Reciprocal cross-holdings of capital between a bank and its controllers (see GR-5) which artificially inflate the capital of licensee concerned are not permitted. Any cross-holdings that occur due to acquisitions or takeovers must be deducted from the concerned bank's Total Capital (see also CA-2).

      Amended: January 2015
      Added: January 2011

    • CM-5.5.15

      Any other form of connected lending outside the scope of the above will be dealt with by the CBB on a case-by-case basis.

      Amended: January 2011
      October 2007