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[X1PART THREE U.K. CAPITAL REQUIREMENTS

TITLE II U.K. CAPITAL REQUIREMENTS FOR CREDIT RISK

CHAPTER 6 U.K. Counterparty credit risk

Section 4 U.K. Original Exposure Method

Article 275 U.K. Original Exposure Method

1. The exposure value is the notional amount of each instrument multiplied by the percentages set out in Table 3.

Table 3
Original maturity Interest-rate contracts Contracts concerning foreign-exchange rates and gold
One year or less 0,5 % 2 %
Over one year, not exceeding two years 1 % 5 %
Additional allowance for each additional year 1 % 3 %

2. For calculating the exposure value of interest-rate contracts, an institution may choose to use either the original or residual maturity.]