3.1 The sum of all the exposure values of a Bank to a single counterparty or to a Group Of Connected Counterparties must not be higher than 25% of the Bank's Tier 1 capital at all times.

3.2 For a global systemically important Bank's exposures to another global systemically important bank, the large exposure limit is 15%. When a bank is identified by the Financial Stability Board as a global systemically important bank, Banks must apply the 15% limit within 12 months of publication of the list by the Financial Stability Board.

3.3 For exposures to the UAE local governments and their public sector entities, the large exposure limits as set out in Article 12 of this regulation apply.

3.4 Additional restrictions apply to exposures to Related Parties as set out in Article 18 of this regulation.

3.5 Breaches of the limits described in Article 3.1 to 3.4 must be communicated immediately to the Central Bank and must be rapidly rectified.

3.6 For any breaches of the limits described in Article 3.1 to 3.4, the Tier 1 capital will be reduced by the amount by which the limit is breached.

3.7 The Central Bank may in exceptional cases, if it deems the risk to be low, waive the application of Article 3.6 for exposures to a particular counterparty or Group of Connected Counterparties, and determine a risk-weight to be applied to the amount by which the limit is breached instead.