The bank, which is a well-capitalized

A bank that is well capitalized and sufficiently capitalized and conducting break-even activity within the last six months, may grant loans in excess of the established standard maximum amount of credit exposure to one counterparty (H7), in the case of lending to customers, which Debt service is provided cash cover (deposit or certificates of deposit) or an unconditional obligation, delivered directly to the bank: a) governments or central banks of states belonging to category A (Australia, Austria, Belgium, Denmark, Greece, Iceland, Ireland, Spain, Italy, Canada, Korea, Luxembourg, Mexico, Norway, New Zealand, Netherlands, United Kingdom of Great Britain and Northern Ireland, Poland, Portugal, USA, Turkey, Finland, France, Czech Republic, Sweden, Switzerland and Japan), or the countries - members of the EEC or b) the International Bank for Reconstruction and Development or the European Bank for Reconstruction and Development, or c) first-class banks that have issued a credit rating not below investment grade - for the obligations of contracting parties with execution period of one year or less. The Board of the National Bank may grant permission to exceed the established standard of maximum risk on a counterparty, subject to the bank with the applicant standard large credit risks (N8), and if it has at the date of the actual loan documents and additional conditions stipulated by the Regulations. Category: Risks in Banking | Tags: capitalized, Credit Risk