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  • Exempt Exposures to Connected Counterparties

    • CM-4.5.3

      Exposures to subsidiaries which are always fully consolidated on a line-by-line basis for supervisory purposes are exempt from the limits in this Module on a consolidated basis, however banks must observe the large exposure limits in CM-4.4.13 on a solo basis and the CBB's solo capital adequacy requirements in Module CA.

      Amended: January 2015
      Added: January 2011

    • CM-4.5.4

      Exposures to unconsolidated subsidiaries (normally non-financial and outside the scope of regulatory consolidation) are not exempt from the limits in this Module and will be included under the limits for exposures to associates, related parties and unconsolidated subsidiaries.

      Amended: January 2015
      Amended: January 2011
      October 2007

    • CM-4.5.5

      Banks may apply to the CBB to take on a treasury role on behalf of the group as a whole (provided that the group is subject to consolidated supervision by its home supervisor). The CBB's policy regarding the taking on of a treasury role includes exposures arising from a central risk management function. Such exposures must be approved by the CBB before they may be exempted.

      Amended: January 2011
      October 2007

    • CM-4.5.6

      In the above scenario (Paragraph CM-4.5.5), for example, exposures of more than 15% of the Total Capital to a parent bank from a subsidiary bank may be permitted where they constitute short term placements or financing of excess liquid funds.

      Amended: January 2015
      Amended: January 2011
      October 2007