BANK 4.6.21 Effect of giving implicit support

A banking business firm that gives implicit support to a securitisation:

(a) must include the underwriting exposures of the securitisation in its calculation of risk-weighted assets (as if those assets had not been securitised and had remained on its balance sheet);
(b) must not recognise any gain-on-sale of the underlying assets; and
(c) must disclose to investors that it has provided implicit support and the effect on regulatory capital of doing so.
Inserted by QFCRA RM/2017-2 (as from 1st April 2017).