Book traversal links for K. Higher Risk Categories
K. Higher Risk Categories
C 52/2017 STA Effective from 1/12/202235.The following claims shall be risk weighted at 150% or higher:
- (i)Claims on sovereigns, PSEs, banks, and securities firms rated below B-;
- (ii)Claims on corporates rated below BB-;
- (iii)Past due loans as set out in section J above; and
- (iv)Real estate acquired in settlement of debt and not liquidated within the statutory period (Article 93 of Federal Law).
36.The Central Bank may apply a 150% or higher risk weight reflecting the higher risks associated with the assets.
37.The risk weights applicable to securitisation and re-securitisation exposures are set out in the Standards on Capital for Securitisation Exposures.