CM-4.2.3

Past version: Effective from 01 Jan 2011 to 30 Jun 2011
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Large exposures are calculated using the sum of the nominal amounts before the application of the risk weighting and credit conversion factors for:

(a) On-balance sheet claims;
(b) Guarantees and other contingent claims; and
(c) Potential claims in the case of undrawn facilities.

The amount at risk from Shari'a compliant derivative contracts is taken to be the credit equivalent amount calculated based on the guidelines for the prudential returns (see module CA). In the case of equity exposures, the current fair value as shown in the books of the bank should be taken as the measure of exposure.

Amended: January 2011
October 2007