CA-11.3.7A
The CBB will consider approving the exclusion of the above positions for the purpose of calculating the capital requirement, only if the following conditions are met:
(a) The conventional bank licensee provides adequate documentary evidence to the CBB which establishes the fact that the positions proposed to be excluded are, indeed, of a structural, i.e. non-dealing, nature and are merely intended to protect the conventional bank licensee's CAR. For this purpose, the CBB may ask for written representations from the conventional bank licensee's management or directors; and
(b) Any exclusion of a position is consistently applied, with the treatment of the hedge remaining the same for the life of the associated assets or other items.
January 2015