BANK 3.2.31 Assets lodged or pledged to secure liabilities

(1) A banking business firm must deduct from CET 1 capital the amount of any assets lodged or pledged by the firm if:
(a) the assets were lodged or pledged to secure liabilities incurred by the firm; and
(b) the assets are not available to meet the liabilities of the firm.
(2) The Regulatory Authority may determine that, in the circumstances, the amount of assets lodged or pledged need not be deducted from the firm’s CET 1 capital. The determination must be in writing.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).