BANK 5.2.1 Guidance

1 Significant sources of concentration risk include:
(a) concentration of exposures to a single counterparty or connected counterparties;
(b) concentration of exposures to counterparties in the same industry, sector, region or country; and
(c) concentration of exposures to counterparties whose financial performance depends on the same activity or commodity.
2 A concentration of exposures would also arise if a firm accepts collateral or credit protection provided by a single provider.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).