Book traversal links for Article (18): Exposures to Related Parties
Article (18): Exposures to Related Parties
C 1/2023 Effective from 26/7/202318.1 In addition to the large exposure limits, additional limits apply to the Related Parties as set out below:
Aggregate | Individual | ||
18.1.1 | Shareholders who own 5% or more of a Bank’s capital, the Group Of Connected Counterparties they belong to, and their Related Parties | 50% | 20% |
18.1.2 | Bank’s non-bank subsidiaries and affiliates | 25% | 10% |
18.1.3 | Bank’s Board Members | 25% | 5% |
18.1.4 | Bank’s external auditors | Prohibited |
18.2 In Article 18.1.1 above, the individual limit for shareholders applies to an independent shareholder, the Group Of Connected Counterparties they belong to, and their Related Parties. The aggregate limit applies to multiple such Groups of Connected Counterparties and Related Parties, which are otherwise not identified as a Group Of Connected Counterparties.
18.3 Where a Board Member constitutes a Group Of Connected Counterparties with a shareholder who owns 5% or more of the Bank's capital, the lower limits applicable to Board Members apply to that Group Of Connected Counterparties. However, a natural person nominated by a shareholder need not be considered a Group Of Connected Counterparties with that shareholder based on his nomination alone.