BANK 3.2.40 Firms may use estimates or exclude deductions
(1) If it is impractical for a banking business firm to examine and monitor the firm's exposures to the capital of entities concerned (including through holdings of indexed securities), the firm may apply to the Regulatory Authority for approval to use an estimate of such exposures. The authority will grant such an approval only after the firm satisfies the authority that the estimate is conservative, well-founded and reasonable.
(2) A banking business firm may also apply to the Regulatory Authority for approval not to deduct an investment made to resolve, or provide financial assistance to reorganise, a distressed entity.
|Amended by QFCRA RM/2015-3 (as from 1st January 2016).|