Item number

Description

95 to 111

Wholesale HHI

In order to identify potential concentration in the reporting bank's relevant credit portfolios, the bank shall, based on its risk weighted assets calculated in accordance with the relevant requirements specified in these Regulations, calculate its relevant Herfindahl-Hirschman Index, which index—

(a)

is defined as HHI = S (proportion of total value)2

(b)

shall in the case of wholesale exposure be based on specified industries;

(c)

may range in value, with the most diversified portfolio reflecting a calculated value close to zero and the most concentrated portfolio reflecting a calculated value close or equal to 100 per cent.

112 to 117

Retail HHI

In order to identify potential concentration in the reporting bank's relevant credit portfolios, the bank shall, based on its risk weighted assets calculated in accordance with the relevant requirements specified in these Regulations, calculate its relevant Herfindahl-Hirschman Index—

(a)

which risk weighted assets shall be divided by the relevant number of clients in order to determine the relevant average amount of risk weighted assets per client;

(b)

which index is defined as HHI = S (proportion of total value)2

(c)

which index shall in the case of retail exposure be based on specified products;

(d)

which index may range in value, with the most diversified portfolio reflecting a calculated value close to zero and the most concentrated portfolio reflecting a calculated value close or equal to 100 per cent.