BANK 8.1.7 Floating-rate exposures

A banking business firm must set a prudent limit on the extent to which floating-rate exposures are funded by fixed-rate sources (and vice versa). In floating-rate lending, the firm must set a prudent limit to the extent to which it runs any basis risk that would arise if lending and funding were not based on identical market interest rates.

Derived from QFCRA RM/2014-2 (as from 1st January 2015).