Entire section

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.