[Regulation 24(7) heading substituted by section 3(b) of Notice No. 943, GG46159, dated 31 March 2022 : effective 1 April 2022]
| (7) | Prescribed percentages and amounts relating to specified concentration risk |
| (a) | The prescribed percentage of a specified amount contemplated in section 73(1)(a) of the Act shall in the case of a bank, controlling company, branch or branch of a bank be 10 per cent of the respective amounts specified in subparagraphs (i) to (v) below: |
| (i) | In the case of a bank, joint venture or foreign subsidiary of a bank reporting on a solo basis, the specified amount shall be 10 per cent of the sum of the qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds of the said reporting bank, joint venture or foreign subsidiary of the bank, as the case may be, as reported in item 77 of the form BA 700, as at the end of the reporting date immediately preceding the reporting date to which the current form BA 210 relates; |
| (ii) | In the case of a bank or controlling company reporting on a consolidated basis, the specified amount shall be 10 per cent of the sum of the consolidated amount of qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds of the said reporting bank or controlling company , as the case may be, as reported in item 77 of the form BA 700, as at the end of the reporting date immediately preceding the reporting date to which the current form BA 210 relates; |
| (iii) | In the case of a foreign subsidiary of a controlling company required to report on a solo basis, the specified amount shall be 10 per cent of the sum of the qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds of the entity directed in writing by the Authority; |
| (iv) | In the case of a foreign institution that conducts the business of a bank through a branch in the Republic, the specified amount shall be 10 per cent of the qualifying tier 1 capital and reserve funds of the said foreign institution that conducts the business of a bank through its branch in the Republic; |
| (v) | In the case of a branch of a bank, the specified amount shall be 10 per cent of the sum of the qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds of the parent bank in the Republic, as reported in item 77 of the form BA 700, as at the end of the reporting date immediately preceding the reporting date to which the current form BA 210 relates. |
| (b) | When the the aggregate amount of investments, loans, advances and other credit contemplated in section 73(1)(a) of the Act, exceeds 800 per cent of the respective amounts of capital and reserve funds specified in paragraph (a) above, the bank, controlling company, foreign subsidiary of a controlling company, branch or branch of a bank, as the case may be, shall be subject to such additional capital requirements related to credit concentration risk as may be directed in writing by the Authority. |
| (c) | The prescribed percentage of a specified amount contemplated in section 73(2) of the Act shall in the case of a bank, controlling company, branch or branch of a bank be the relevant percentage of the respective amounts specified in subparagraphs (i) to (v) below: |
| (i) | In the case of a bank, joint venture or foreign subsidiary of a bank reporting on a solo basis, the specified percentage and the specified amount shall in the case of an exposure to— |
| (A) | a D-SIB or D-SIFI be the percentage of the amount specified in subregulation (6)(c)(iv)(A); |
| (B) | a G-SIB be the percentage of the amount specified in subregulation (6)(c)(iv)(B); |
| (C) | any other person, other than a D-SIB, D-SIFI or G-SIB, be the percentage of the amount specified in subregulation (6)(c)(iv)(C); |
| (ii) | In the case of a bank or controlling company reporting on a consolidated basis, the specified percentage and the specified amount shall in the case of an exposure to— |
| (A) | a D-SIB or D-SIFI be the percentage of the amount specified in subregulation (6)(c)(iv)(A); |
| (B) | a G-SIB be the percentage of the amount specified in subregulation (6)(c)(iv)(B); |
| (C) | any other person, other than a D-SIB, D-SIFI or G-SIB, be the percentage of the amount specified in subregulation (6)(c)(iv)(C); |
| (iii) | In the case of a foreign subsidiary of a controlling company required to report on a solo basis, the specified percentage and the specified amount shall in all relevant cases be the relevant percentage of the sum of the qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds of the entity directed inwriting by the Authority; |
| (iv) | In the case of a foreign institution that conducts the business of a bank through a branch in the Republic, the specified percentage and the specified amount shall in the case of an exposure to— |
| (A) | a D-SIB or D-SIFI be the percentage of the amount specified in subregulation (6)(c)(iv)(A) that relates to the said foreign institution that conducts the business of a bank through its branch in the Republic; |
| (B) | a G-SIB be the percentage of the amount specified in subregulation (6)(c)(iv)(B) that relates to the said foreign institution that conducts the business of a bank through its branch in the Republic; |
| (C) | any other person, other than a D-SIB, D-SIFI or G-SIB, be the percentage of the amount specified in subregulation (6)(c)(iv)(C) that relates to the said foreign institution that conducts the business of a bank through its branch in the Republic; |
| (v) | In the case of a branch of a bank, the specified percentage and the specified amount shall in the case of an exposure to— |
| (A) | a D-SIB or D-SIFI be the percentage of the amount specified in subregulation (6)(c)(iv)(A) that relates to the parent bank in the Republic; |
| (B) | a G-SIB be the percentage of the amount specified in subregulation (6)(c)(iv}(B) that relates to the parent bank in the Republic; |
| (C) | any other person, other than a D-SIB, D-SIFI or G-SIB, be the percentage of the amount specified in subregulation (6)(c)(iv)(C) that relates to the parent bank in the Republic. |
[Regulation 24(7) substituted by section 3(b) of Notice No. 943, GG46159, dated 31 March 2022 : effective 1 April 2022]
