ANNEX VI U.K. STANDARDISED APPROACH

PART 1 U.K. RISK WEIGHTS

6. EXPOSURES TO INSTITUTIONS U.K.

6.6. Short-term exposures in the national currency of the borrower U.K.

37. Exposures to institutions of a residual maturity of 3 months or less denominated and funded in the national currency may, subject to the discretion of the competent authority, be assigned, under both methods described in points 26 to 27 and 29 to 32, a risk weight that is one category less favourable than the preferential risk weight, as described in points 4 and 5, assigned to exposures to its central government. U.K.

38. No exposures of a residual maturity of 3 months or less denominated and funded in the national currency of the borrower shall be assigned a risk weight less than 20 %. U.K.