This document outlines the risk weights assigned to exposures to institutions and corporates, based on short-term credit assessments by nominated External Credit Assessment Institutions (ECAIs), in accordance with Article 136. The risk weights are categorised into six Credit Quality Steps, each corresponding to a specific percentage that reflects the credit risk associated with the underlying entity.

As delineated in Table 7, exposures rated in Credit Quality Step 1 enjoy a favourable risk weight of 20%, while those in Step 2 carry a 50% risk weight. Steps 3 to 6 incrementally escalate risk weights, capping at 150%. This framework ensures a robust compliance mechanism for effective risk management in line with regulatory expectations.