Versions

 

CM-4.10.5

This section refers to the treatment of investments in commercial entities which are otherwise not connected to the concerned bank (i.e. the bank's connection to the entity is by way of shareholding or holding of other capital instruments). If a bank is investing in a commercial company where there is a connection by way of mutual directors or mutual parent, or some other relationship that makes the investee a 'related party' as defined by IFRS, then the major investment must be treated as an exposure to a connected counterparty and the concerned limits and rules for exposures to connected counterparties apply.

Added: October 2016