BANK 4.8.7 Limits on lending to related parties

A banking business firm must not enter into a transaction that would cause it to exceed the limits set out in table 4.8.7 unless it has the written approval of the Regulatory Authority to do so.

Table 4.8.7 Limits on banking business firms' exposure to related parties

column 1 item column 2 kind of exposure column 3 limit (% of total assets)
1 exposures to a member of the governing body or senior management of the firm, or a person connected to either of them 0.5
2 the total of exposures under item 1 3
3 exposures to a significant shareholder of the firm (other than exposures to a shareholder that is a deposit-taker or an equivalent entity regulated in a way comparable to a deposit-taker in the QFC)) 2
4 the total of exposures under item 3 5
5 exposures to a related party or a party connected to the related party (other than exposures to a deposit-taker or an equivalent entity that is regulated in a way comparable to a deposit-taker in the QFC) 2
6 the total of exposures under item 5 5

Amended by QFCRA RM/2015-3 (as from 1st January 2016).