BANK 2.1.3 Financial group and prudential risk

(1) If a banking business firm is part of a financial group, credit risk, market risk, operational risk, IRRBB and liquidity risk (collectively referred to as prudential risk) apply on a consolidated basis to the firm and the other members that make up the financial group.
(2) Done on a consolidated basis means done not just to include the financial activities or items of the firm but those of the other members of its financial group as well.

Note A banking business firm must have systems to enable it to calculate its financial group capital requirement and resources — see rule 10.1.3(3). The firm must ensure that its financial group capital resources exceed its financial group capital requirement — see rule 10.2.2(1).
Amended by QFCRA RM/2015-1 (as from 1st July 2015).