Large exposures are those funded and unfunded outstandings and committed unused limits (less provisions, cash collaterals, bank guarantees and Federal Government guarantee) which a bank allows to a single borrower or his group which in total equal to or exceed 10% of the bank’s capital base. Any exposure beyond this percentage must be incurred in accordance with these regulations and guidelines. Suitable adjustments are allowed for exempted exposures as described in Para 2.11 and for computation of CCF in respect of contingent exposures.

Large exposure limits refer to the level of maximum exposure which a bank may allow to a single borrower or his group. These limits are specified in the Table contained in Article (2) of Circular 32/2013.