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Article (19): Application to Branches of Foreign

C 1/2023 Effective from 26/7/2023

19.1 The general large exposure limit applicable to branches of foreign banks is equal to the lower of 250% of the Branch Capital and 25% of the entity level capital. This is instead of the limit set in Article 3.1 of this regulation.

19.2 A branch's head office and its head office's branches are always considered a single counterparty, and, based on the criteria set out in Article 4 of this regulation, will normally constitute a Group Of Connected Counterparties with its group, including all subsidiaries of the ultimate parent, to which the large exposure limits apply.

19.3 A branch of a foreign bank must limit its exposures to its head office, which includes exposures to other branches of the head office, to maximum 30% of the Branch Capital for funded exposures and 300% of the Branch Capital for unfunded exposures.

19.4 For the large exposure limits for which the application to branches is not specified, the same limits apply as for Banks incorporated in the UAE, and the limits are applied to the Branch Capital.