Concession Limit Approval Application Form (2019-03)

Summary

This is an application form used by Jersey banks to request a Concession Limit from the JFSC, allowing exposures that exceed 25% of agreed capital resources (ACR) to governments or connected group banks. It sets out the data and supporting documents the JFSC expects to see when considering such a request.

• Required submission package: A completed Application Form, the registered person's most recent credit assessment of the counterparty, and a covering letter outlining the request and any facilities to be put in place within the Concession Limit
• Section A - Request details: Bank name, DC reference, counterparty name, prior approval reference/date, current direct exposure, guarantees, total relevant exposures, current and requested Concession Limit, Adjusted Capital Base, and Agreed Capital Resources with reconciliation
• Section B - Counterparty details: Lowest credit rating (Fitch, S&P or Moody's) for a group bank or for HI-OECD/non-HI-OECD government counterparties, plus the applicable risk weighting for long-term exposures

The form itself does not set a recurring compliance deadline; it is procedural, used whenever a bank wishes to seek or update JFSC approval for exposures above the 25% ACR threshold under the related Guidance Note.

Key obligations

• A registered person (bank) seeking approval to exceed the 25% of ACR exposure limit to a government or connected bank must submit a completed Concession Limit Application Form together with its most recent credit assessment of the counterparty and a covering letter detailing the request
• The application must disclose current and requested Concession Limit amounts, total direct exposure, related guarantees, Adjusted Capital Base, and Agreed Capital Resources with a reconciliation between the two
• The application must state the lowest available credit rating (from Fitch, Standard & Poor's or Moody's) and the applicable risk weighting for the counterparty (group bank, HI-OECD government, or non-HI-OECD government)

Applies to

banks (registered persons)