Regulatory Alerts1994-12-31
Large Exposure Limits - 1994
OSFI establishes large credit risk exposure limits for federally regulated banks, foreign bank branches, and trust and loan companies by capping aggregate exposures to any entity or connected group at 25 percent of total capital. The guideline mandates written internal policies and management control systems, while permitting Canadian subsidiaries to qualify for a higher 100 percent capital limit if specific supervisory and financial strength criteria are satisfied. All covered institutions must report exposures exceeding 50 percent of capital to the Superintendent within ten working days and continuously monitor defined exposure exclusions.
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