Regulatory Alerts2010-11-23
Added · Updated
Supplementary policy on exposures to subsidiaries of multinational corporations under the Policy Rule on Concentration Risk in Emerging Countries
Supervised institutions may include at least 50% of exposures to subsidiaries of multinational corporations in the calculation of net material country concentration as an other risk-mitigating measure. Institutions must demonstrate that the parent company is capable and prepared to support the holding, evidenced by factors such as shared naming, global activity, financial size, and absence of strategic risk segregation. This 50% weighting applies unless the parent company has issued legally enforceable, complete, and irrevocable guarantees, which would constitute a risk transfer.
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