Article 1 › 3

Exposures assigned to Grade A, B or C in accordance with paragraph 1 shall be assigned a risk weight as follows: (a) exposures assigned to Grade A, B or C which meet any of the following conditions shall be assigned a risk weight for short-term exposures in accordance with Table 1: (i) the exposure has an original maturity of three months or less; (ii) the exposure has an original maturity of six months or less and arises from the movement of goods across national borders; (b) exposures assigned to Grade A which are not short term shall be assigned a risk weight of 30 % where all of the following conditions are met: (i) the exposure does not meet any of the conditions set out in point (a); (ii) the institution’s Common Equity Tier 1 capital ratio is equal to or higher than 14 %; (iii) the institution’s leverage ratio is equal to or higher than 5 %; (c) exposures assigned to Grade A, B or C that do not meet the conditions set out in point (a) or (b) shall be assigned a risk weight in accordance with Table 1. Where an exposure to an institution is not denominated in the domestic currency of the jurisdiction of incorporation of that institution, or where that institution has booked the credit obligation in a branch in a different jurisdiction and the exposure is not in the domestic currency of the jurisdiction in which the branch operates, the risk weight assigned in accordance with point (a), (b) or (c), to exposures other than those with a maturity of one year or less stemming from self-liquidating, trade-related contingent items that arise from the movement of goods across national borders shall not be lower than the risk weight of an exposure to the central government of the country where the institution is incorporated. ’;

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Source: EUR-Lex CELLAR · retrieved 2026-09-04