Other Scenarios - Concentration Risk and Business Continuity for a Banking Sector

              Other Scenarios - Concentration Risk and Business Continuity for a Banking Sector

PART: 18

11.4.4. Concentration Risk

The Bank’s general policy is to limit exposures to counter-parties to less than 13% of the adjusted capital base with most being less than 9%.  By doing so it limits the possibility of experiencing a large loss impairing the capital base. At present, there is only one exposure which exceeds 12% and there are only four others exceeding 7%. These are all closely monitored.  The aggregate of exposures exceeding 8% of ABCD is limited to 300% of ABCD.  As at 7th December 2000 the aggregate of these large exposure was 34.5% of ABCD.

11.4.5. Business Continuity

The Bank has a rehearsed Business Continuity Plan utilising its own back-up facilities at the ABC branch.  The most recent Business Continuity exercise took place in October 2000 and was successful. Additionally desktop tests will be undertaken at least twice a year.