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CM-5.3.2

Past version: Effective from 01 Jul 2011 to 31 Dec 2014
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As a general rule, exposures must be reported on a gross basis (i.e. no offset). However, debit balances on accounts may be offset against credit balances on other accounts with the bank if:

(a) A legally enforceable right of set off exists in all cases (as confirmed by a independent legal opinion addressed to the bank) in respect of the recognised amounts;
(b) The debit and credit balances relate to the same customer or to customers in the same group (for a group facility, a full cross guarantee structure must also exist before debit balances on accounts may be offset against credit balances i.e. full multilateral guarantees must be in place between all the companies within the group); and
(c) The bank intends either to settle on a net basis, or to realise the debit balances and settle the credit balances simultaneously.
Amended: July 2011
Amended: January 2011
October 2007