BANK 4.5.11 Risk-weight for claims

(1) The secured part of a claim must be risk-weighted at whichever is the higher of 20% or the risk-weight applicable to the eligible financial collateral. However, a risk-weight lower than 20% may be applied to the secured part if rule 4.5.12 applies.

Note Under this rule, 20% risk-weight is the minimum that can be applied to the secured part of the claim. A risk-weight of less than 20% is allowed only for some transactions — see rule 4.5.12.
(2) The unsecured part of the claim must be weighted at the risk-weight applicable to the original counterparty.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).