Policies—large exposures
(5) A Bank’s large exposure policy must include:
- (a) exposure limits, commensurate with the Bank’s risk tolerance, risk profile and capital, for:
- (i) categories of counterparties (for example, sovereigns, other Banks and other financial entities, corporate and individual borrowers);
- (ii) connected counterparties;
- (iii) particular industries or sectors;
- (iv) particular countries; and
- (v) asset classes (for example, property holdings);
- (b) the circumstances in which the exposure limits may be exceeded;
- (c) the procedures for approving exceptions to, and deviations from, exposure limits or policies; and
- (d) the procedures for identifying, measuring, managing and reporting large exposures.