CM-4.8 CM-4.8 Concentrations in economic and market sectors
CM-4.8.1
The extent to which a bank may be prudently exposed to a particular economic sector will vary considerably depending upon the characteristics and strategy of the bank, and the sector concerned.
CM-4.8.2
Concentrations should also be recognized in not just economic sectors, but also in markets (e.g. individual stock exchanges). The Agency 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.
CM-4.8.3
Banks must specify in their policy statements how they define economic and market sectors, and what limits apply to differing sectors.
CM-4.8.4
Exposures and limits for sectors should be reviewed at least quarterly by the Board of Directors.
CM-4.8.5
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.
