CTHIn ForceLegislation
Banking (prudential standard) determination No. 2 of 2025
Risk-weighted on-balance sheet assetsRisk-weighted on-balance sheet assets
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Risk-weighted on-balance sheet assets
- An ADI must calculate the RWA of an on-balance sheet exposure by multiplying the current book value of the exposure (including accrued interest or revaluations, and net of any provisions for defaulted exposures, partial write-off or associated depreciation) by the relevant risk weight. Where an ADI has liquid assets[4] accounted for at amortised cost, the ADI may adjust its exposures for deductions from Common Equity Tier 1 Capital to reflect unrealised fair value losses at a portfolio level as allowed under paragraph 41 of Attachment D to APS 111.