Regulatory Alerts2025-12-19
Added · Updated
Large Exposures and Risk Concentrations
This module sets minimum standards for Authorized Institutions (AIs) regarding controls on large exposures and risk concentrations, defining a large exposure as any exposure to a counterparty or LC group equal to or greater than 10% of Tier 1 capital. It establishes statutory limits under the Banking (Exposure Limits) Rules, including a 25% Tier 1 capital limit on exposure to any individual counterparty or LC group, and a stricter 15% limit for AIs designated as global systemically important institutions. The document also outlines specific rules for equity exposure, interest in land holdings, credit risk transfer treatments, and the classification of institutions into Category A or B for CRM recognition purposes.
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