Regulatory Alerts2018-08-01
Added
Limitations on Indebtedness of a Borrower and of a Group of Borrowers
The Proper Conduct of Banking Business Directive no. 313 is amended to apply to credit card companies, defining them as acquirers and issuers of payment cards. Exposure to a credit card group of borrowers is limited to 15 percent of a banking corporation’s capital, and such indebtedness is included in the aggregate limitation for large borrowers exceeding 10 percent of capital. A five-year transition period exempts indebtedness of banking groups to credit card companies from these specific limitations, while existing deviations must be reduced gradually within three years of the separation of credit card companies from banking corporations.