Back Custom print Link Text Only Rich Text Print

  • Deductions from Total Capital

    • CM-4.4.14

      The CBB will closely examine all exposures to companies or persons connected to a bank 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
      Added: April 2008

    • CM-4.4.15

      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-2.4.15).

      Amended: January 2015
      Added: January 2011

    • CM-4.4.16

      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.

      Added: January 2011