Regulatory Alerts2011-12-01
Added · Updated
Consolidated scope for Policy Rule on Concentration Risk
Banks and investment firms must apply the Policy Rule on Concentration Risk at both solo and consolidated levels. At the consolidated level, gross country exposure may be reduced by local funding raised by subsidiaries in the same market, whereas funding from other group entities cannot be deducted. The rule requires that exposures to residents and subsidiaries in countries with nonnegligible country risk remain within applicable thresholds.
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