CM-5.6.2
Past version: Effective from 01 Oct 2007 to 31 Dec 2010
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These exemptions fall into the following categories and are subject, in each case, to the policy statement as agreed with the Central Bank:
(a) short term (i.e. up to six months original maturity) interbank exposures ;
(b) exposures to GCC governments, their semi-governmental institutions and agencies that do not operate on a commercial basis, as set out in the guidelines to the PIR/PIRC (see Module CA);
(c) exposures to OECD central governments or exposures secured by OECD central government securities / guarantees;
(d) exposures secured by cash or GCC government securities /guarantees;
(e) certain connected exposures , in particular those arising from a group Treasury function (see Paragraphs CM-5.6.3 to CM-5.6.6);
(f) exposures which are covered by a guarantee from the bank's parent (see Paragraphs CM-5.6.7 to CM-5.6.10); and
(g) exposures arising from underwriting activities, such exposures continuing for no more than 90 calendar days. Underwriting exposures should normally be part of the trading book of a bank. Any residual holdings of securities held for more than 90 days from the commitment date of underwriting are no longer exempt and are subject to normal large exposure limits.
October 07