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<p>UK-based lenders are subject to extensive prudential disclosure requirements under
UK law, including for loans made to Governments. The Capital Requirements Regulation
requires firms to disclose the geographic distribution of their credit exposures,
including those to central banks and governments. These are only required to be disclosed
if the loans are material, in accordance with European Banking Authority guidelines.
Similarly, the geographical distribution will be broken down to show the areas for
which there are material exposures. Lending to a specific country may not be disclosed
specifically as lending to that country’s government if it makes up a relatively small
amount of the firm’s activity. Instead, the lending would be grouped together with
other small exposures to foreign governments under ‘other’ categories.</p><p> </p><p>It
is firms’ responsibility to ensure adequate assurance over their disclosures and they
are required to have policies for assessing the appropriateness of their disclosures,
including their verification and frequency.</p><p> </p><p>Firms’ compliance with disclosure
guidelines will generally be subject to review from their Internal Audit function.
As the relevant competent authority, the Prudential Regulation Authority (PRA) takes
a risk-based approach to supervision, which will affect whether each individual firm’s
disclosures are subject to a compliance review.</p>
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