Regulatory Alerts2017-12-04
Risk weight for Asian Infrastructure Investment Bank (AIIB)
The regulatory authority assigns a 0% risk weight to all qualifying exposures to the Asian Infrastructure Investment Bank (AIIB), aligning domestic capital requirements with Basel Committee on Banking Supervision standards for multilateral development banks. This directive applies immediately to debt securities and loan commitments held by regulated banking institutions, requiring prompt updates to capital adequacy calculations. The ruling supersedes prior conflicting provisions and takes effect upon issuance, ensuring consistent risk assessment across the financial sector.
Risk Weight for Asian Infrastructure Investment Bank (AIIB)
Date: 1439/03/16 H Reference No.: [Document ID]
Pursuant to the regulatory framework, exposures to the Asian Infrastructure Investment Bank (AIIB) shall be assigned a risk weight of 0%. This treatment aligns with the Basel Committee on Banking Supervision (BCBS) standards for multilateral development banks (MDBs), as outlined in the official publication at https://www.bis.org/publ/bcbs nl20.htm.
The 0% risk weight applies to all qualifying exposures, including debt securities and loan commitments, held by regulated banking institutions. This directive takes effect immediately upon issuance and supersedes prior conflicting provisions regarding AIIB exposures. All banking entities must update their regulatory capital calculations to reflect this risk weight assignment.
Approved By: Regulatory Authority Effective Date: 1439/03/16 H