Regulatory Alerts2019-01-11
Added · Updated
Circular to Credit Institutions on Banking Rule BR/09
The Malta Financial Services Authority issues two annexes to Banking Rule BR/09: Annex 1 clarifies the treatment of connected clients under Article 4(1)(39) of Regulation (EU) No 575/2013, requiring credit institutions to group clients into a single risk based on control relationships or economic dependency; Annex 2 sets limits on exposures to shadow banking entities under Article 395(2) of the CRR, mandating internal frameworks for identifying, managing, and mitigating related risks overseen by the Board of Directors. New paragraphs 63A and 70A are added to Banking Rule BR/09 to incorporate these annexes, which come into force with immediate effect.