AI Summary of Article 114 Exposures to central governments or central banks
This document outlines the risk weighting procedures for exposures to central governments and central banks. By default, such exposures are assigned a 100% risk weight, but alternative treatments exist based on credit assessments by nominated External Credit Assessment Institutions (ECAIs), as detailed in the specified table.
Notably, exposures to the European Central Bank (ECB) and those of Member States’ central governments and banks in their domestic currency attract a 0% risk weight. Furthermore, provisions are in place for third countries meeting equivalent regulatory standards, allowing for potential adjustments to these risk weights.
Article 114 Exposures to central governments or central banks
1. Exposures to central governments and central banks shall be assigned a 100 % risk weight, unless the treatments set out in paragraphs 2 to 7 apply.
2. Exposures to central governments and central banks for which a credit assessment by a nominated ECAI is available shall be assigned a risk weight in accordance with Table 1 which corresponds to the credit assessment of the ECAI in accordance with Article 136.
|
Credit quality step |
1 |
2 |
3 |
4 |
5 |
6 |
|---|---|---|---|---|---|---|
|
Risk weight |
0 % |
20 % |
50 % |
100 % |
100 % |
150 % |
3. Exposures to the ECB shall be assigned a 0 % risk weight.
4. Exposures to Member States' central governments, and central banks denominated and funded in the domestic currency of that central government and central bank shall be assigned a risk weight of 0 %.
5. [deleted]