CM-2.3.2

Past version: Effective from 01 Oct 2007 to 31 Dec 2010
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In many banks there is a tendency to indulge in 'name-financing' without any credit analysis or understanding of the concerned counterparty's current outstanding facilities from other banks. The Central Bank strongly discourages the banks to engage in such activities in order to minimise their credit risk and reputation risk.

October 07