Regulatory Alerts2014-04-24
Added · Updated
Basel Committee – New Large Exposures Framework
The Basel Committee on Banking Supervision issued the New Large Exposures Framework to establish a comprehensive regulatory standard for limiting credit risk concentrations. The framework requires banks to calculate and cap their exposures to single counterparties and groups of connected clients to mitigate systemic risk. These limits are designed to ensure that financial institutions maintain adequate capital buffers against potential large-scale defaults.
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