CTHRepealedLegislation
Financial Sector (Collection of Data) (reporting standard) determination No. 24 of 2019
Section A: Non-market-related off-balancSection A: Non-market-related off-balance sheet transactions
Start here
Get a plain-English read of Section A: Non-market-related off-balanc
Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 24 of 2019.
Section A: Non-market-related off-balance sheet transactions
| Column 1 | Report the notional principal amount. Absolute values should be reported. |
|---|---|
| Column 2 | Report the CEA. IRB ADIs are required to manually input the total CEA for each off-balance sheet exposure type listed in section A of this form.In relation to a non-market-related off-balance sheet transaction, the CEA is calculated by multiplying the notional principal amount of a particular transaction by the relevant CCF, according to which internal ratings-based approach is used – either foundation or advanced.The CEA for some off-balance sheet exposure types may consist of several discrete exposures, each potentially attracting different CCFs. The ADI must determine the appropriate CCF(s) to be applied to the exposure(s) to calculate the CEA for that off-balance sheet exposure type and report the total as a single CEA. |
Refer to Attachment B of APS 112 and Prudential Practice Guide APG 112 Standardised Approach to Credit Risk (APG 112) for further details of the definitions of the following non-market related transactions.
| Item 1.1 | Include:(a) potential credit exposures arising from the issue of guarantees and credit derivatives;(b) confirmation of letters of credit;(c) issue of standby letters of credit serving as financial guarantees for loans, securities and any other financial liabilities;(d) bills endorsed under bill endorsement lines; and(e) any other direct credit substitutes. |
|---|---|
| Item 1.2 | Include:(a) issue of performance bonds;(b) bid bonds;(c) warranties;(d) indemnities; and(e) standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction. |
| Item 1.3 | Include:(a) documentary letters of credit issued;(b) acceptances on trade bills;(c) shipping guarantees issued; and(d) any other trade-related contingencies. |
| Item 1.4 | Include:(a) repurchase/reverse repurchase agreements; and(b) securities lending/borrowing transactions. |
| Item 1.5 | Include any asset sales (to the extent that such assets are not included on-balance sheet) by an IRB ADI where the holder of the asset is entitled to ‘put’ the asset back to the ADI within an agreed period or under certain prescribed circumstances, e.g. deterioration in the value or credit quality of the asset concerned.These transactions are risk-weighted according to the type of assets or the issuer of securities (as appropriate) and not according to the counterparty with whom the transaction is made, where the credit risk associated with the underlying asset which has been sold (temporarily with recourse) or purchased, remains with the ADI. |