This document outlines the risk weighting criteria for exposures to regional governments and local authorities, dictated by the availability of credit assessments from nominated External Credit Assessment Institutions (ECAIs). Where an ECAI assessment exists, risk weights range from 20% to 150%, correlating with specific credit quality steps. In instances where ECAI assessments are unavailable, exposures are assessed based on the risk weights assigned to the respective central government.

Additionally, exemptions apply under certain conditions, including the treatment of exposures to churches and religious communities. Notably, exposures denominated and funded in the domestic currency of non-exempt regional governments or local authorities may benefit from a reduced risk weight of 20%.