In case of non-compliance¹ with the large exposure limits (as set out in Chapter CM-5 of the Rulebook), the excess will be deducted from the capital of the bank for regulatory capital purposes. For off-balance sheet items, the excess is to be calculated after the application of credit conversion factors as detailed in chapter CA-3 of the Capital Adequacy Module for conventional banks.

¹ For the purpose of this rule, non-compliance means where a large exposure is taken without prior approval of CBB.