Art. 132c · Treatment of off-balance-sheet exposures to CIUs

Previous version, in force 9 July 2024 02013R0575-20240709 → this version, in force 1 January 2025 02013R0575-20250101

Article 132c Treatment of off-balance-sheet exposures to CIUs 1. Institutions shall calculate the risk-weighted exposure amount for their off-balance-sheet items with the potential to be converted into exposures in the form of units or shares in a CIU by multiplying the exposure values of those exposures calculated in accordance with Article 111, with the following risk weight: (a) for all exposures for which institutions use one of the approaches set out in Article 132a: RW*iRWAEiE*iAiEQi where: RW*i the risk weight; i the index denoting the CIU: RWAEi the amount calculated in accordance with Article 132a for a CIUi; E*i the exposure value of the exposures of CIUi; Ai the accounting value of assets of CIUi; and EQi the accounting value of the equity of CIUi. (b) for all other exposures, RW*i1250 %. 2. Institutions shall calculate the exposure value of a minimum value commitment that meets the conditions set out in paragraph 3 of this Article as the discounted present value of the guaranteed amount using a default discount factor that is derived from a risk-free discount factor. rate pursuant to Article 325l(2) or (3), as applicable. Institutions may reduce the exposure value of the minimum value commitment by any losses recognised with respect to the minimum value commitment under the applicable accounting standard. Institutions shall calculate the risk-weighted exposure amount for off-balance-sheet exposures arising from minimum value … 321 unchanged words … limit the potential for a further reduction of the excess in other ways; (e) the ultimate direct or indirect beneficiary of the minimum value commitment is typically a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU.;