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Article (18): Exposures to Related Parties

C 1/2023 Effective from 26/7/2023

18.1 In addition to the large exposure limits, additional limits apply to the Related Parties as set out below:

  AggregateIndividual
18.1.1Shareholders who own 5% or more of a Bank’s capital, the Group Of Connected Counterparties they belong to, and their Related Parties50%20%
18.1.2Bank’s non-bank subsidiaries and affiliates25%10%
18.1.3Bank’s Board Members25%5%
18.1.4Bank’s external auditorsProhibited 

 

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.