7.3.1.4 Off Balance Sheet

This section enlists all the preseeded assumptions for CFR Off-Balance Sheet items.

Table 6-8 Preconfigured Off-Balance Sheet Assumptions HKMA CFR

Sl. No.	Business Assumption Name	Business Assumption Description	Regulatory Requirement Addressed	Regulatory Reference
1	HKMA RCF- Credit and Liquidity Facilities to Client	HKMA RCF- Off balance sheet exposures- Irrevocable, revocable and conditionally revocable credit and liquidity facilities offered to any clients by the bank.	The RCF factor applicable to irrevocable, revocable, and conditionally revocable credit and liquidity facilities offered to any clients by the bank is predefined as part of this assumption. The assumption applies a 5% RCF factor to the undrawn amount of irrevocable and conditionally revocable credit and liquidity facilities and RCF factor of 0% in case of revocable credit and liquidity facilities.	Annexure 2
2	HKMA RCF- Guarantees and Letters of Credit	HKMA RCF- Off balance sheet exposures- Guarantees and letters of credit.	The RCF factor applicable to the Guarantees and Letters of credit offered by the bank is predefined as part of this assumption. The assumption applies a 0% RCF factor to the EOP balance of the trade-related and non-trade related Guarantees and Letters of credit.	Annexure 2