Off-balance sheet commitments and contingencies with credit conversion factors 0%, 20%, 50% and 100%

The values of off-balanced sheet items shall be multiplied by the applicable credit conversion factors with the result to be multiplied by the applicable risk weights under regulation 5 above. The credit conversion factors shall be as followsand 50% and 100%. (1) 0% credit conversion factor, commitments and contingencies with an original maturity of up to one year, or which can be unconditionally cancelled at any time. (2) 20% credit conversion factor, short term, self-liquidating, trade-related contingencies (such as documentary letters of credit collateralised by the underlying shipments). 28 (3) 50% credit conversion factor– (a) transaction-related (e.g., performance bonds, bid bonds, warranties and standby letters of credit related to particular transactions); (b) other commitments (e.g., formal standby facilities and credit lines) with an original maturity of over one year. (4) 100% credit conversion factor– (a) direct credit substitutes, including general guarantees of indebtedness (including standby letters of credit serving as financial guarantees for loans and securities); (b) sale and repurchase agreements, and asset sales with recourse, where the credit risk remains with the bank; (c) forward asset purchases, forward deposits, uncalled partly paid shares and securities, including commitments with certain draw down.