On the 15 April, the Basel Committee on Banking Supervision, published a final standard that sets out a supervisory framework for measuring and controlling large exposures, which will take effect from 1st January 2019. A large exposure framework protects banks from significant losses caused by the sudden default of an individual counterparty or a group of connected counterparties. The framework was designed so that, the maximum possible loss a bank could incur if such a default were to occur would not endanger the bank's survival as a growing concern. In cases where the bank's counterparty is another bank, large exposure limits will directly contribute towards the reduction of system-wide risk. In addition, by extending the scope of coverage to exposures to funds, securitisation structures and collective investment undertakings, the framework is also a useful tool to contribute to strengthening the oversight and regulation of the shadow banking system. The large exposure which has just been published by the Basel Committee includes a general limit applied to all of a bank's exposure to a single counterparty which is set at 25% of a bank's Tier 1 capital. This limit also applies to a bank's exposure to identified groups of connected counterparties. A tighter limit will apply to exposures between banks that have been designated as global systemically important banks. This limit has been set at 15% of Tier 1 capital.