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Appendix 1: Banking, Securities, Insurance and Other Financial Entities - Significant Investment (Ownership in the Entity More Than 10%)

C 52/2017 STA Effective from 1/4/2021
Significant investment (ownership in the entity more than 10% )
EntityEntity activityInvestment ClassificationListed/UnlistedBank's ownership in the entity (% of Holding)Investment Amount
ABankingBanking BookListed40%60
BInsuranceBanking BookListed18%35
CSecuritiesBanking BookUnlisted16%28
DBankingTrading BookListed11%18
a. Total significant investment (Banking, Securities, insurance and other financial entities)141
b. Bank's CET1 (after applying all the regulatory deduction except section 3.9 and 3.10 of the Tier Capital Supply Standard)1000
c. Limit (10 % of bank's CET1)100
d. Amount to be deducted from bank's CET141
e. Amount not deducted to considered for aggregate threshold deduction100

 

The remaining amount of 100 is to be distributed amongst the investments on a pro rata / proportionate basis and risk weighted at 250% (assuming no threshold deduction apply).The total of 250 RWA (100 *250%) will be distributed as follows.

EntityInvestment ClassificationInvestment Amountas a % of all such investmentCalculation of amount not deducted to be risk weightedRisk weightRWASection
ABanking Book6042%43 (100 x 43%)250%106.38Credit Risk
BBanking Book3525%25 (100 x 25%)250%62.06Credit Risk
CBanking Book2820%20 (100 x 20%)250%49.65Credit Risk
DTrading Book1813%13 (100 x 13%)Equity Risk - Market risk section
  141100%100