BANK 4.5.15 Eligible guarantors

(1) Eligible guarantor means:
(a) the State of Qatar or any other sovereign;
(b) an entity that is treated as a sovereign in accordance with the Basel Accords; or
(c) a public sector enterprise or other entity that has:
(i) a risk-weight of 20% or lower; and
(ii) a lower risk-weight than the counterparty.
(2) A parent entity, subsidiary or affiliate of a counterparty may be an eligible guarantor if it has a lower risk-weight than the counterparty.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).