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1. Risk Weights for Off-Balance-Sheet Exposures

C 52/2017 STA Effective from 1/4/2021

19.The Standards requires that banks apply a 100% CCF to any securitisation-related off-balance-sheet exposures that are not credit risk mitigants. One example of such an off-balance-sheet exposure that may arise with securitisations is a commitment for servicer cash advances, under which a servicer enters into a contract to advance cash to ensure an uninterrupted flow of payments to investors. The BCBS securitisation framework provides national discretion to permit the undrawn portion of servicer cash advances that are unconditionally cancellable without prior notice to receive the CCF for unconditionally cancellable. The Central Bank has chosen not to adopt this discretionary treatment, and instead requires a 100% CCF for all off-balance-sheet exposures, including undrawn servicer cash advances.