7.3.1.4 Off-Balance Sheet Items
Table 6-7 Off-Balance Sheet Items
| Assumption Name | Assumption Description | Regulatory Requirement Addressed | RegulatoryReference :BNM/RH/ED 029-3 |
|---|---|---|---|
| BNM-RSF- Credit and liquidity facilities to client | Off balance sheet exposures- Irrevocable, revocable and conditionally revocable credit and liquidity facilities offered to any clients by the bank | The RSF factor applicable to irrevocable, revocable and conditionally revocable credit and liquidity facilities offered to any clients by the bank, is pre-defined as part of this assumption. The assumption applies a 5% RSF factor to the undrawn amount of irrevocable and conditionally revocable credit and liquidity facilities and RSF factor of 2% in case of revocable credit and liquidity facilities. | Paragraph 9.22 |
| BNM-RSF- Guarantees and letters of credit | Off balance sheet exposures- Guarantees and letters of credit | The RSF factor applicable to the Guarantees and Letters of credit offered by the bank, is pre-defined as part of this assumption. The assumption applies a 0.5% RSF factor to the EOP balance of the trade related Guarantees and Letters of credit and RSF factor of 1% for non-trade related Guarantees and Letters of credit. | Paragraph 9.22 |
| BNM-RSF- Non contractual obligations type | Non contractual obligations type such as managed funds etc | The RSF factor applicable to the non-contractual obligations type such as managed funds, is pre-defined as part of this assumption. The assumption applies 5% RSF factor to the aforesaid non-contractual obligations amount. | Paragraph 9.22 |
| BNM-RSF- Non contractual obligations | Non contractual obligations type such as Adjustable Rate Notes and Variable Rate Demand Notes (VRDNs). | The RSF factor applicable to the non-contractual obligations for structured products such as Variable rate notes (VRDNs), Adjustable rate notes (ARDNs) etc. offered by the bank, is pre-defined as part of this assumption. The assumption applies 100% RSF factor to the EOP balance for aforesaid non-contractual obligations. | Paragraph 9.22 |
|
BNM-RSF- Debt Buy Back Requests |
Non contractual obligations type such as requests for debt repurchases. | The RSF factor applicable to the non-contractual obligations for debt repurchase, is pre-defined as part of this assumption. The assumption applies 10% RSF factor to the debt buy back amount if the bank acts as dealer or market maker and 5% in case the bank is not the market maker or dealer for the debt securities issued or sponsored. | Paragraph 9.22 |