CBUAE Country and Transfer Risks Standards

CONTENTS

INTRODUCTION ...2

Article 1: Definitions ...2

Article 2: Risk Governance Framework ...4

Article 3: Risk Management Function...6

Article 4: Stress-Testing ...6

Article 5: Information Systems and Internal Reporting ...7

Article 6: Reporting Requirements...7

INTRODUCTION

1. These Standards form part of the Country and Transfer Risks Regulation. All Banks must comply with these Standards, which expand on the Regulation. These Standards are mandatory and enforceable in the same manner as the Regulation.
2. Banks engaged in international activities are exposed to the risk that conditions and events in a foreign country will adversely affect their financial performance. They are further exposed to the risk that capital controls or foreign exchange restrictions may limit the ability of a foreign counterparty, branch or subsidiary to make contractual payments. These country and transfer risks could threaten the soundness of a bank if not monitored and controlled.
3. A Bank's board of directors is in ultimate control of the bank and accordingly, ultimately responsible for the bank's approach to country and transfer risk. Country and transfer risks ...