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CM-2.3.27

When a LTA is not required, according to Paragraph CM-2.3.23, a Bahraini Islamic bank licensee must, nevertheless, be able to demonstrate that regulatory arbitrage considerations have not influenced the decision whether to look through or not – e.g. that the licensee has not circumvented the large exposure limit by investing in several individually immaterial transactions with identical underlying assets.

Added: June 2022