Appendix 1: Banking, Securities, Insurance and Other Financial Entities - Significant Investment (Ownership in the Entity More Than 10%)
C 52/2017 STA Effective from 1/4/2021| Significant investment (ownership in the entity more than 10% ) | |||||
| Entity | Entity activity | Investment Classification | Listed/Unlisted | Bank's ownership in the entity (% of Holding) | Investment Amount |
| A | Banking | Banking Book | Listed | 40% | 60 |
| B | Insurance | Banking Book | Listed | 18% | 35 |
| C | Securities | Banking Book | Unlisted | 16% | 28 |
| D | Banking | Trading Book | Listed | 11% | 18 |
| a. Total significant investment (Banking, Securities, insurance and other financial entities) | 141 | ||||
| b. Bank's CET1 (after applying all the regulatory deduction except section 3.9 and 3.10 of the Tier Capital Supply Standard) | 1000 | ||||
| c. Limit (10 % of bank's CET1) | 100 | ||||
| d. Amount to be deducted from bank's CET1 | 41 | ||||
| e. Amount not deducted to considered for aggregate threshold deduction | 100 | ||||
The remaining amount of 100 is to be distributed amongst the investments on a pro rata / proportionate basis and risk weighted at 250% (assuming no threshold deduction apply).The total of 250 RWA (100 *250%) will be distributed as follows.
| Entity | Investment Classification | Investment Amount | as a % of all such investment | Calculation of amount not deducted to be risk weighted | Risk weight | RWA | Section |
| A | Banking Book | 60 | 42% | 43 (100 x 43%) | 250% | 106.38 | Credit Risk |
| B | Banking Book | 35 | 25% | 25 (100 x 25%) | 250% | 62.06 | Credit Risk |
| C | Banking Book | 28 | 20% | 20 (100 x 20%) | 250% | 49.65 | Credit Risk |
| D | Trading Book | 18 | 13% | 13 (100 x 13%) | Equity Risk - Market risk section | ||
| 141 | 100% | 100 | |||||