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