Connected exposures

Locally incorporated registered banks are subject to limits on the level of credit exposure that they have to connected persons.

The term ‘connected person' is defined in the Connected Exposures Policy (BS8) (PDF 55KB) to be a person who is:

  • an owner; or
  • an entity in which an owner has a substantial interest; or
  • a person which has a substantial interest in an owner; or
  • a director of the registered bank.

Aggregate credit exposures to non-bank connected persons shall not exceed 15 percent of the banking group's tier 1 capital.

Aggregate credit exposures to all connected persons - that is, banks and non-banks - shall not exceed the rating-contingent limit outlined in the following matrix.

Credit rating

Connected exposure limit (% tier 1 capital)

AA/Aa2 and above

75

AA-/Aa3

70

A+/A1

60

A/A2

40

A-/A3

30

BBB+/Baa1 and below

15