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CA-8.1.5

Conventional bank licensees must have clearly defined policies and procedures for determining which exposures to include in, and to exclude from, the trading book for purposes of calculating their regulatory capital, to ensure compliance with the criteria for trading book set forth in this Section and taking into account the conventional bank licensee's risk management capabilities and practices. The conventional bank licensee must have well-documented procedures to comply with stated policies, which must be fully documented and subject to periodic internal audit.

January 2015