Question

If a financial institution's exposure to its own group entities is already deducted from its Owned Funds to compute its Net Owned Funds (NO

  • F , how is it treated under large exposure limit caps?
A It is subject to a mandatory double-risk capital weight penalty
B It is completely exempted from large exposure framework limits to prevent double counting
C It must be lumped into the specialized 35% infrastructure project limit
D It is treated as an off-balance sheet item with a mandatory 100% conversion factor
E It requires direct regulatory board validation before every individual reporting cycle
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