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Division 4.2.2.1 General definitions

United Kingdom

Original text. Later amendments are not shown.

In principle ‘new business’ within the meaning of the restrictions on new business under points 4.1.1 to 4.1.6 is defined according to HGAA’s existing risk reporting standards and therefore encompasses either:

  • risk-relevantf1 credit/leasing transactions with a completely new client (or with a group of connected clients — GoB) - i.e. ‘new client business’ (NCB); or

  • increases in credit/leasing exposure with existing clients (on a product basis) - i.e. ‘exposure-increasing business’ (ExIB); and

  • credit/leasing exposure renewals (prolongations) with existing clients (on a product basis) going beyond a tenor of […] – i.e. ‘exposure-prolonging business’ - (ExPB)f2.

Annotations

Footnotes

f1

The term ‘risk-relevant business’ is defined as per the Group Credit Principles and therefore includes any credit/leasing business involving counterparty and/or del credere risks.

f2

Even though prolongations with a maximum tenor of […] are not subject to the restrictions on new business under points 4.1.1-4.1.6, such transactions must nevertheless adhere strictly to HGAA risk policies and other relevant regulations.