6.1 As a general principle, the exposure values that must be considered to identify large exposures are the exposures defined under the risk-based capital framework, including both on- and off- balance sheet exposures, both in the banking and the trading book, and including instruments with counterparty credit risk.

6.2 Exposure amounts that are deducted from Tier 1 capital must not be added to the exposures to that counterparty for the purpose of the large exposure framework. This exclusion does not apply to 1,250% risk-weighted exposures.

6.3 As a general principle, the exposure value is the accounting value of the exposure, i.e. reduced by the specific provisions and value adjustments.

6.4 For instruments that give rise to counterparty credit risk, but are not securities financing transactions, the exposure value must be the exposure at default in accordance with the standardized approach for counterparty credit risk.

6.5 The exposure value for securities financing transactions must be calculated using the comprehensive approach with standard supervisory haircuts for credit risk mitigation as set out in the capital adequacy regulation.

6.6 The exposure amount for off-balance sheet exposures is calculated by converting the off- balance sheet items into credit exposure equivalents through the use of credit conversion factors as set out in the standardized approach for credit risk. For the purpose of the large exposures framework, the minimum credit conversion factor applied for off-balance sheet items is 10%.