Risk Weighting Items Flashcards
Cash
On-Balance Sheet Risk Weighting – 0%
Central banks of OECD countries balances
0%
Federal Reserve Bank Stock
0%
GNMA Securities
0%
Gold Bullion
0%
Guaranteed by US Gov Agencies
0% (GNMA, VA, FHA,FMHA, ExIm Bank, OPIC, CCC, SBA)
OECD Central Governments
0%
Local currency claims on or unconditionally guaranteed by non-OECD Central Governments
0%
SBA Securities
0%
US Treasury Bond
0%
Vault Cash
0%
Cash items in process of collection
On-Balance Sheet Risk Weighting – 20%
Correspondent bank balances and portions of guaranteed by banks
On-Balance Sheet Risk Weighting – 20%
Due from banks
On-Balance Sheet Risk Weighting – 20%
FHLB Stock
On-Balance Sheet Risk Weighting – 20%
FHLMC - Pass Through
On-Balance Sheet Risk Weighting – 20%
General obligation securities of state of political subdivisions
On-Balance Sheet Risk Weighting – 20%
GO Bonds
On-Balance Sheet Risk Weighting – 20%
Investment in mutual funds which only permit holding of 0% and 20% risk weighted assets
On-Balance Sheet Risk Weighting – 20%
Loans collateralized by securities issued/granted by government (agency, sponsored agency, OECD) securities
On-Balance Sheet Risk Weighting – 20%
Loans guaranteed by FHA
On-Balance Sheet Risk Weighting – 20%
Loans secured by cash
On-Balance Sheet Risk Weighting – 20%
Portions of conditionally guaranteed claims by non-OECD central governments
On-Balance Sheet Risk Weighting – 20%
Portions of loans and other claims conditionally guaranteed by US Treasury, US government agencies, or OECD central banks
On-Balance Sheet Risk Weighting – 20%
Recourse obligations, direct credit substitutes, residual interests, and asset/mortgage backed securities
(Rated in the top two categories (AAA or AA) or the highest rating category for short term ratings (A-1 or P-1)
On-Balance Sheet Risk Weighting – 20%
Secured by cash in a segregated account at a bank
On-Balance Sheet Risk Weighting – 20%
Securities and claims guarantys on Government sponsored agencies (FHLMC, FNMA, SLMA, & FHLB)
On-Balance Sheet Risk Weighting – 20%
Short-term claims on and portions guaranteed by non-OECD banks
On-Balance Sheet Risk Weighting – 20%
1-4 Family Mtg
On-Balance Sheet Risk Weighting – 50%
Loans fully secured by first liens on a residential property made on prudent basis and not PD 90 days or more or nonaccrual
On-Balance Sheet Risk Weighting – 50%
Loans secured by first liens on multifamily residential properties
On-Balance Sheet Risk Weighting – 50%
Loans to builders with substantial project equity for construction of residences that have been pre-sold under firm contracts
On-Balance Sheet Risk Weighting – 50%
Municipal Water Revenue
On-Balance Sheet Risk Weighting – 50%
Recourse obligations, direct credit substitutes, residual interests, and asset/mortgage backed securities (Rated in the third-highest categories (A) or the second highest rating category for short term ratings (A-2 or P-2))
On-Balance Sheet Risk Weighting – 50%
Revenue Bonds
On-Balance Sheet Risk Weighting – 50%
AIR Commercial Loan
On-Balance Sheet Risk Weighting – 100%
All claims on foreign and domestic private-sector obligors (including loans to nondepository banks and BHC)
On-Balance Sheet Risk Weighting – 100%
All obligations of states or political S/D of countries that do not belong to the OECD
On-Balance Sheet Risk Weighting – 100%
Bank Premises
On-Balance Sheet Risk Weighting – 100%
Business Loans
On-Balance Sheet Risk Weighting – 100%
Claims on commercial firms owned by the public sector
On-Balance Sheet Risk Weighting – 100%
Claims representing capital of a qualifying securities firm
On-Balance Sheet Risk Weighting – 100%
Commercial and consumer loans (except those assigned to lower risk categories)
On-Balance Sheet Risk Weighting – 100%
Common and preferred stock of corporations
On-Balance Sheet Risk Weighting – 100%
Consumer Loans
On-Balance Sheet Risk Weighting – 100%
CRE Loans
On-Balance Sheet Risk Weighting – 100%
Customer liabilities to the bank on acceptances outstanding involving standard risk claims
On-Balance Sheet Risk Weighting – 100%
FA, premises, and ORE
On-Balance Sheet Risk Weighting – 100%
Farm Loans
On-Balance Sheet Risk Weighting – 100%
HELOC 2nd lien
On-Balance Sheet Risk Weighting – 100%
I/O Strips
On-Balance Sheet Risk Weighting – 100%
Industrial development bonds
On-Balance Sheet Risk Weighting – 100%
Industrial Development Loans
On-Balance Sheet Risk Weighting – 100%
Investments in unconsolidated companies, joint ventures; instruments that qualify as capital issued by other banks; deferred tax assets; MSAs, NMSAs, and PCCRs.
On-Balance Sheet Risk Weighting – 100%
MSR
On-Balance Sheet Risk Weighting – 100%
OREO
On-Balance Sheet Risk Weighting – 100%
Recourse obligations, direct credit substitutes, etc. rated in the lowest investment grade (BBB) or A-3 or P-3
On-Balance Sheet Risk Weighting – 100%
Stripped MBS and others (IO strips that are not credit-enhancing and principal-only strips)
On-Balance Sheet Risk Weighting – 100%
A position in a securitization or structured finance program that is not rated by an NRSRO
On-Balance Sheet Risk Weighting – 200%
Externally rated recourse obligations, direct credit substitutes, residual interests (other than a credit-enhancing interest only strip) ABS and MBS that are rated one category below investment grade (e.g. BB)
On-Balance Sheet Risk Weighting – 200%
Unused portions of commitments with an original maturity of one year or less
Off-Balance Sheet Risk Weighting 0%
Unused portions of retail credit card lines and related plans if unconditional option to cancel at any time
Off-Balance Sheet Risk Weighting 0%
Lent Securities that are supported by an appropriate amount of collateral that qualifies for 0% risk weighting
Off-Balance Sheet Risk Weighting 0%
ABCP liquidity facilities (unused portions)
Off-Balance Sheet Risk Weighting 10%
6-month loan commitment to commercial borrower
Off-Balance Sheet Risk Weighting 20%
Commercial letters of credit (contingencies that arise from the movement of goods, ST, self-liquidating, trade-related contingencies) (Ex. Commercial LETTER of Credit)
Off-Balance Sheet Risk Weighting 20%
Lent securities that are supported by an appropriate amount of collateral that qualifies for 20% risk weighting or <1yr
Off-Balance Sheet Risk Weighting 20%
Note Issuance Facilities (NIFs, Contingent 1 Liab.)
Off-Balance Sheet Risk Weighting 50%
Performance standby letters of credit
Off-Balance Sheet Risk Weighting 50%
Revolving Underwriting Facilities (RUFs, Contingent 1 Liab.)
Off-Balance Sheet Risk Weighting 50%
Unfunded HELOC, greater than 1 yr, 2nd lien
Off-Balance Sheet Risk Weighting 50%
Unused portions of commitments with an original maturity exceeding one year (Ex. Commercial LINE of Credit with an original maturity exceeding 1 year)
Off-Balance Sheet Risk Weighting 50%
Financial SBLOC
Off-Balance Sheet Risk Weighting 100%
Forward agreements
Off-Balance Sheet Risk Weighting 100%
Participations sold with recourse
Off-Balance Sheet Risk Weighting 100%
Sale and repurchase agreements (Repo)
Off-Balance Sheet Risk Weighting 100%
Securities, indemnifies the customer against loss
Off-Balance Sheet Risk Weighting 100%
Lent securities not risk weighted lower (credit equivalent amount)
Off-Balance Sheet Risk Weighting 100%
Off-balance sheet items subject to a 100 percent conversion factor:
(1) Direct credit substitutes, including general guarantees of indebtedness and guarantee -type instruments, such as financial standby letters of credit.
(2) Risk participations acquired in bankers acceptances and in direct credit substitutes such as financial standby letters of credit.
(3) Sale and repurchase agreements and assets sold with recourse, if not included on the balance sheet, except low level recourse transactions and small business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994, each of which is discussed below.
(4) Forward agreements/contingent obligations to purchase assets with drawdown certain. (Exclude forward agreements that are reported as derivative contracts.)
(5) Securities lent, if the lending bank is exposed to risk of loss.
Off-balance sheet items subject to a 50 percent conversion factor:
(1) Transaction-related contingencies, including performance standby letters of credit, shipside guarantees, bid bonds, performance bonds, and warranties.
(2) Unused portions of commitments with an original maturity exceeding one year, including underwriting commitments and commercial credit lines.
(3) Revolving underwriting facilities (RUFs), note issuance facilities (NIFs), and other similar arrangements, regardless of maturity.
Off-balance sheet items subject to a 20 percent conversion factor:
(1) Short-term, self-liquidating, trade-related contingencies, including commercial letters of credit.
Off-balance sheet items subject to a zero percent conversion factor:
(1) Unused portions of commitments with an original maturity of one year or less.
(2) Unused portions of commitments (regardless of maturity) which are unconditionally cancellable at any time, provided a separate credit decision is made before each drawing.
Off- balance sheet conversion factor
Direct credit substitutes, including general guarantees of indebtedness and guarantee -type instruments, such as financial standby letters of credit.
100%
Off- balance sheet conversion factor
Risk participations acquired in bankers acceptances and in direct credit substitutes such as financial standby letters of credit.
100%
Off- balance sheet conversion factor
Sale and repurchase agreements and assets sold with recourse, if not included on the balance sheet, except low level recourse transactions and small business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994, each of which is discussed below.
100%
Off- balance sheet conversion factor
Forward agreements/contingent obligations to purchase assets with drawdown certain. (Exclude forward agreements that are reported as derivative contracts.)
100%
Off- balance sheet conversion factor
Securities lent, if the lending bank is exposed to risk of loss.
100%
Off- balance sheet conversion factor
Transaction-related contingencies, including performance standby letters of credit, shipside guarantees, bid bonds, performance bonds, and warranties.
50%
Off- balance sheet conversion factor
Unused portions of commitments with an original maturity exceeding one year, including underwriting commitments and commercial credit lines.
50%
Off- balance sheet conversion factor
Revolving underwriting facilities (RUFs), note issuance facilities (NIFs), and other similar arrangements, regardless of maturity.
50%
Off- balance sheet conversion factor
Short-term, self-liquidating, trade-related contingencies, including commercial letters of credit.
20%
Off- balance sheet conversion factor
Unused portions of commitments with an original maturity of one year or less.
0%
Off- balance sheet conversion factor
Unused portions of commitments (regardless of maturity) which are unconditionally cancellable at any time, provided a separate credit decision is made before each drawing.
0%
Risk Weighted Asset Calculations
Risk Weighted Assets (from RC-R)
+ Risk-weighted off balance sheet items
+ Market Risk equivalent Assets (Apply to banks subject to market risk capital guidelines)
(less) Risk Weighted amounts deducted from Tier 1 Capital: Intangibles other than allowed portions of MSRs, NMSAs, and PCRs, Investments in unconsolidated majority owned banking and finance subs, Investments in securities subsidiaries (12 CFR 3374), Reciprocal holdings of capital Instruments banks, DTA disallowed in Tier 1, Ineligible portion of the ALLL.
= Total Risk Weighted Assets.
