The Central Bank deems it undesirable that a bank lends heavily to its shareholders. Therefore, funded and unfunded exposures to a shareholder who owns 5% or more of a bank’s capital (and his related entities) shall not exceed 20% individually and 50% in aggregate.

Where a principal shareholder (for natural persons, not governments) is also a member of a bank’s board of directors, or a similar designated body, such exposures will be considered within the above aggregate exposure limits.