cash on deposit with, or cash assimilated instruments held by, the lending credit institution;
debt securities issued by central governments or central banks, which securities have a credit assessment by an ECAI or export credit agency recognised as eligible for the purposes of Articles 78 to 83 which has been determined by the competent authority to be associated with credit quality step 4 or above under the rules for the risk weighting of exposures to central governments and central banks under Articles 78 to 83;
debt securities issued by institutions, which securities have a credit assessment by an eligible ECAI which has been determined by the competent authority to be associated with credit quality step 3 or above under the rules for the risk weighting of exposures to credit institutions under Articles 78 to 83;
debt securities issued by other entities, which securities have a credit assessment by an eligible ECAI which has been determined by the competent authority to be associated with credit quality step 3 or above under the rules for the risk weighting of exposures to corporates under Articles 78 to 83;
debt securities with a short-term credit assessment by an eligible ECAI which has been determined by the competent authority to be associated with credit quality step 3 or above under the rules for the risk weighting of short term exposures under Articles 78 to 83;
equities or convertible bonds that are included in a main index; and
gold.
For the purposes of point (b), ‘debt securities issued by central governments or central banks’ shall include:
debt securities issued by regional governments or local authorities, exposures to which are treated as exposures to the central government in whose jurisdiction they are established under Articles 78 to 83;
debt securities issued by public sector entities which are treated as exposures to central governments in accordance with point 15 of Part 1 of Annex VI;
debt securities issued by multilateral development banks to which a 0 % risk weight is assigned under Articles 78 to 83; and
debt securities issued by international organisations which are assigned a 0 % risk weight under Articles 78 to 83.
For the purposes of point (c), ‘debt securities issued by institutions’ include:
debt securities issued by regional governments or local authorities other than those exposures to which are treated as exposures to the central government in whose jurisdiction they are established under Articles 78 to 83;
debt securities issued by public sector entities, exposures to which are treated as exposures to credit institutions under Articles 78 to 83; and
debt securities issued by multilateral development banks other than those to which a 0 % risk weight is assigned under Articles 78 to 83.
they are listed on a recognised exchange;
they qualify as senior debt;
all other rated issues by the issuing institution of the same seniority have a credit assessment by an eligible ECAI which has been determined by the competent authorities to be associated with credit quality step 3 or above under the rules for the risk weighting of exposures to institutions or short term exposures under Articles 78 to 83;
the lending credit institution has no information to suggest that the issue would justify a credit assessment below that indicated in (c); and
the credit institution can demonstrate to the competent authorities that the market liquidity of the instrument is sufficient for these purposes.
they have a daily public price quote; and
the collective investment undertaking is limited to investing in instruments that are eligible for recognition under points 7 and 8.
The use (or potential use) by a collective investment undertaking of derivative instruments to hedge permitted investments shall not prevent units in that undertaking from being eligible.
equities or convertible bonds not included in a main index but traded on a recognised exchange; and
units in collective investment undertakings if the following conditions are met:
they have a daily public price quote; and
the collective investment undertaking is limited to investing in instruments that are eligible for recognition under point 7 and 8 and the items mentioned in point (a) of this point.
The use (or potential use) by a collective investment undertaking of derivative instruments to hedge permitted investments shall not prevent units in that undertaking from being eligible.
the value of the property does not materially depend upon the credit quality of the obligor. This requirement does not preclude situations where purely macro‐economic factors affect both the value of the property and the performance of the borrower; and
the risk of the borrower does not materially depend upon the performance of the underlying property or project, but rather on the underlying capacity of the borrower to repay the debt from other sources. As such, repayment of the facility does not materially depend on any cash flow generated by the underlying property serving as collateral.
losses stemming from loans collateralised by commercial real estate property up to 50 % of the market value (or where applicable and if lower 60 % of the mortgage-lending-value) do not exceed 0,3 % of the outstanding loans collateralised by commercial real estate property in any given year; and
overall losses stemming from loans collateralised by commercial real estate property do not exceed 0,5 % of the outstanding loans collateralised by commercial real estate property in any given year.
the existence of liquid markets for disposal of the collateral in an expeditious and economically efficient manner; and
the existence of well-established publicly available market prices for the collateral. The credit institution must be able to demonstrate that there is no evidence that the net prices it receives when collateral is realised deviates significantly from these market prices.