Zero weighting

1. (1)

   cash in hand and equivalent items;

2. (2)

   asset items constituting claims on Zone A central governments and central banks;

3. (3)

   asset items constituting claims on the European Communities;

4. (4)

   asset items constituting claims carrying the explicit guarantees of Zone A central governments and central banks or of the European Communities;

5. (5)

   asset items constituting claims on Zone B central governments and central banks denominated and funded in the national currencies of the borrowers;

6. (6)

   asset items constituting claims carrying the explicit guarantees of Zone B central governments and central banks denominated and funded in the national currency common to the guarantor and the borrower;

7. (7)

   asset items secured to the satisfaction of the competent authorities, by collateral in the form of Zone A central government or central bank securities or securities issued by the European Communities or by cash deposits placed with the lending institution or by certificates of deposit or similar instruments issued by and lodged with the latter;

20 % weighting

1. (1)

   asset items constituting claims on the EIB;

2. (2)

   asset items constituting claims on multilateral development banks;

3. (3)

   asset items constituting claims carrying the explicit guarantee of the EIB;

4. (4)

   asset items constituting claims carrying the explicit guarantees of multilateral development banks;

5. (5)

   asset items constituting claims on Zone A regional governments or local authorities, subject to Article 44;

6. (6)

   asset items constituting claims carrying the explicit guarantees of Zone A regional governments or local authorities, subject to Article 44;

7. (7)

   asset items constituting claims on Zone A credit institutions but not constituting such institutions' own funds;

8. (8)

   asset items constituting claims with a maturity of one year or less, on Zone B credit institutions, other than securities issued by such institutions which are recognised as components of their own funds;

9. (9)

   asset items carrying the explicit guarantees of Zone A credit institutions;

10. (10)

    asset items constituting claims with a maturity of one year or less carrying the explicit guarantees of Zone B credit institutions;

11. (11)

    asset items secured, to the satisfaction of the competent authorities, by collateral in the form of securities issued by the EIB or by multilateral development banks;

12. (12)

    cash items in the process of collection;

50 % weighting

1. (1)

   loans fully and completely secured, to the satisfaction of the competent authorities, by mortgages on residential property which is or will be occupied or let by the borrower, and loans fully and completely secured, to the satisfaction of the competent authorities, by shares in Finnish residential housing companies, operating in accordance with the Finnish Housing Company Act of 1991 or subsequent equivalent legislation, in respect of residential property which is or will be occupied or let by the borrower;

   ‘mortgage-backed securities’ which may be treated as loans referred to in the first subparagraph or in Article 62(1), if the competent authorities consider, having regard to the legal framework in force in each Member State, that they are equivalent in the light of the credit risk. Without prejudice to the types of securities which may be included in and are capable of fulfilling the conditions in this point 1, ‘mortgage-backed securities’ may include instruments within the meaning of Section B(1)(a) and (b) of the Annex to Council Directive 93/22/EEC20. The competent authorities must in particular be satisfied that:

   1. (i)

      such securities are fully and directly backed by a pool of mortgages which are of the same nature as those defined in the first subparagraph or in Article 62(1) and are fully performing when the mortgage-backed securities are created;

   2. (ii)

      an acceptable high-priority charge on the underlying mortgage-asset items is held either directly by investors in mortgage-backed securities or on their behalf by a trustee or mandated representative in the same proportion to the securities which they hold;

2. (2)

   prepayments and accrued income: these assets shall be subject to the weighting corresponding to the counterparty where a credit institution is able to determine it in accordance with Directive 86/635/EEC. Otherwise, where it is unable to determine the counterparty, it shall apply a flat-rate weighting of 50 %;

100 % weighting

1. (1)

   asset items constituting claims on Zone B central governments and central banks except where denominated and funded in the national currency of the borrower;

2. (2)

   asset items constituting claims on Zone B regional governments or local authorities;

3. (3)

   asset items constituting claims with a maturity of more than one year on Zone B credit institutions;

4. (4)

   asset items constituting claims on the Zone A and Zone B non-bank sectors;

5. (5)

   tangible ‘Assets’ within the meaning of Article 4(10) of Directive 86/635/EEC;

6. (6)

   holdings of shares, participation and other components of the own funds of other credit institutions which are not deducted from the own funds of the lending institutions;

7. (7)

   all other assets except where deducted from own funds.