Article 1 › 4

The following equity exposures to unlisted companies shall be assigned a risk weight of 400 %, unless those exposures are required to be deducted or risk weighted in accordance with Part Two: (a) investments for short-term resale purposes; (b) investments in venture capital firms or similar investments which are acquired in anticipation of significant short-term capital gains. By way of derogation from the first subparagraph of this paragraph, long-term equity investments, including investments in equities of corporate clients with which the institution has or intends to establish a long-term business relationship and debt-equity swaps for corporate restructuring purposes shall be assigned a risk weight in accordance with paragraph 3 or 5, as applicable. For the purposes of this Article, a long-term equity investment is an equity investment that is held for three years or longer or incurred with the intention to be held for three years or longer as approved by the institution’s senior management.

← 3 · All articles · 5 →

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