Regulatory Alerts2019-10-31
FINMA Circular 2019/1 Large Exposures - Banks
The Swiss Financial Market Supervisory Authority (FINMA) issued this circular to implement the large exposure rules for banks under the Capital Adequacy and Orderly Resolution Ordinance (ERV). It establishes detailed requirements for identifying connected counterparties, calculating positions in the trading book, and applying risk mitigation measures. The document also provides specific methodologies for handling central counterparties, covered bonds, and collective investment schemes to ensure accurate risk aggregation.
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