CM-4.4.14
Past version: Effective from 01 Apr 2008 to 31 Dec 2010
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The limits for connected counterparties have been set as follows:
| Connected Counterparties | Individual Limit | Aggregate Limit |
| Shareholders with ‘significant ownership’ (mentioned in CM-4.4.13) | 0% | 0% |
| Other connected Counterparties (mentioned in CM-4.4.10) | Individual Limit | Aggregate Limit |
| Direct exposures | A bank may not incur an exposure (whether funded or not funded) to an individual connected counterparty (as defined above) which exceeds 15% of the reporting bank's (consolidated) capital base. (a) | The aggregate exposures to all counterparties within this category should not exceed 25% of the bank's consolidated capital base. (c) |
| Restricted investment accounts | A bank may not incur an exposure (whether funded or not funded) to an individual connected counterparty where the exposure is funded by restricted investment accounts which exceeds 25% of the reporting bank's (consolidated) capital base. (b) | The aggregate exposures to all counterparties within this category should not exceed 35% of the bank's consolidated capital base. (d) |
| The combined exposures | A combined exposure of (a) & (b) above (funded by unrestricted investment accounts and bank's own funds, and restricted investment accounts) whether funded or not funded, to an individual connected counterparty may not exceed 25% of the reporting bank's (consolidated) capital base. | The aggregate exposures of: (c) and (d) above (whether funded from on balance sheet or restricted investment accounts) may not exceed 60% of the bank's (consolidated) capital base, whether funded or not funded. |
Added: April 2008