Exposures, in either the banking or trading books, that will be in the scope of the large exposures framework can be categorized and should be measured as follows:

1. 2.12.1 Banking book on balance sheet non-derivative assets, where the exposure measure is typically determined by accounting standards;
2. 2.12.2 Banking book “traditional” off-balance sheet commitments where the exposure measure is the product of the notional amount of the commitment and the credit conversion factor (CCF) applied (refer to Annexure B-3 for additional details);
3. 2.12.3 Positions in the trading book (excluding options) where the exposure measure is based on the mark-to-market approach of the risk-based capital requirements;
4. 2.12.4 Options in the trading book where the exposure measure is based on a mark-to-market approach with a jump-to-default assumption; and
5. 2.12.5 Counterparty credit risk from derivatives, securities financing transactions, and long settlement transactions across both banking and trading books, where the counterparty credit exposure measure is determined by one of the methods of the counterparty credit risk framework.

Banks may refer to Basel standards/ Basel Team in the Central Bank for further clarification on specific issues.