كتاب روابط اجتياز لـ Appendix 3: Significant Investments in Commercial Entities.
Appendix 3: Significant Investments in Commercial Entities.
C 52/2017 STA يسري تنفيذه من تاريخ 1/4/2021Individual Investment Limit Check and its treatment | |
Bank's CET1 (after applying all the regulatory and threshold deduction) | 1000 |
Individual Limit (10% of bank's CET1D) | 100 |
Step 1: Individual Limit check
Significant investments in commercial entities | ||||||||
Entity | Entity activity | Investment Classification | Listed/ Unlisted | Investment Amount | Amount as a % of bank's CET1 | Significant Investment | Amount to RW at 952% | Remaining amount |
I | Commercial | Banking Book | Listed | 140 | 14% | Yes | 40 | 100 |
J | Commercial | Banking Book | Listed | 120 | 12% | Yes | 20 | 100 |
K | Commercial | Banking Book | Unlisted | 110 | 11% | Yes | 10 | 100 |
L | Commercial | Banking Book | Listed | 115 | 12% | Yes | 15 | 100 |
M | Commercial | Banking Book | Listed | 75 | 8% | No | 75 | |
N | Commercial | Banking Book | Listed | 45 | 5% | No | 45 | |
O | Commercial | Banking Book | Listed | 50 | 5% | No | 50 | |
655 | 85 | 570 |
Risk weighting at 952% on account of 10% threshold on individual basis is 85.
Step 2: Aggregate Limit check
Aggregate of remaining amount of investments after 10% deduction (entity I,J,K,L,M,N & O) | 570 |
Aggregate Limit (25% of bank's CET1) | 250 |
The amount to be risk-weighted at 952% based on the 25% threshold on aggregate basis | 250 |
Remaining amount of investments to be risk-weighted under the applicable risk weighting rules (100% RW for listed and 150% unlisted) | 320 |
Total amount to be risk weighted at 952%: 335 (85 + 250)