Regulatory Alerts2022-04-01
D3-2022 Directive on Large Exposure Requirements
The Financial Regulator issued Directive D3-2022 to establish standardized large exposure limits for banks classified as D-SIB or G-SIB. The directive mandates tiered maximum daily and monthly average exposure thresholds between 15% and 25%, differentiated by institutional status. These requirements roll out across three phased periods from April 2022 to January 2025, progressively tightening capital risk buffers.
Annexure 1 Banks other than a D-SIB or G-SIB D-SIB G-SIB Banks other than a D-SIB or G-SIB maximum (on any day) of 25% Monthly average of 25% Monthly average of 25% D-SIB maximum (on any day) of 25% Monthly average of 20% Maximum of 25% during the month Monthly average of 20% Maximum of 25% during the month G-SIB maximum (on any day) of 25% maximum of 25% maximum (on any day) of 15% Banks other than a D-SIB or G-SIB D-SIB G-SIB Banks other than a D-SIB or G-SIB maximum (on any day) of 25% Monthly average of 25% Monthly average of 25% D-SIB maximum (on any day) of 25% Monthly average of 18% Maximum of 20% during the month Monthly average of 18% Maximum of 20% during the month G-SIB maximum (on any day) of 25% maximum (on any day) of 25% maximum (on any day) of 15% Banks other than a D-SIB or G-SIB D-SIB G-SIB Banks other than a D-SIB or G-SIB maximum (on any day) of 25% maximum (on any day) of 25% maximum (on any day) of 25% D-SIB maximum (on any day) of 25% Monthly average of 15% Maximum of 18% during the month Monthly average of 15% Maximum of 18% during the month G-SIB maximum (on any day) of 25% maximum (on any day) of 25% maximum (on any day) of 15% 1 January 2025 onwards Exposure to Exposure of 1 April 2022 - 31 December 2022 Exposure of Exposure to 1 January 2023 - 31 December 2024 Exposure to Exposure of