Dependent on property cash flowsDependent on property cash flows

Dependent on property cash flows

1. If the prospects for repayment of the exposure depend primarily on the cash flows generated by the asset or other real estate assets owned by the borrower, an ADI must apply the risk weights in Table 3 based on LVR and the classification of the loan as standard or non-standard.

2. Risk weights for commercial property exposures – dependent on property cash flows

<table cellspacing="0" cellpadding="0" style="margin-bottom:0pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td rowspan="2" style="width:116.55pt; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:bottom"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; page-break-after:avoid"><span style="font-weight:bold">LVR (%)</span></p></td><td colspan="3" style="width:276.95pt; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">Risk weight (%)</span></p></td></tr><tr><td style="width:85.1pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">≤ 60</span></p></td><td style="width:85.1pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">60.01 - 80</span></p></td><td style="width:85.15pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span style="font-weight:bold">&gt; 80</span></p></td></tr><tr><td style="width:116.55pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; page-break-after:avoid"><span style="font-weight:bold">Standard</span></p></td><td style="width:85.1pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>70</span></p></td><td style="width:85.1pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>90</span></p></td><td style="width:85.15pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>110</span></p></td></tr><tr><td style="width:116.55pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; page-break-after:avoid"><span style="font-weight:bold">Non-standard</span></p></td><td colspan="3" style="width:276.95pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:3pt; text-align:center; page-break-after:avoid"><span>150</span></p></td></tr></tbody></table>