Regulatory Alerts2000-07-13
Added · Updated
Circular D1/TB/332: Adaptation of the Regulation on Own Funds of Credit Institutions
The document informs credit institutions of modifications to the December 5, 1995, regulation on own funds to align with European Directives 98/31/EC, 98/32/EC, and 98/33/EC, with an effective date of July 21, 2000. Key changes include applying a 50% risk weight to mortgage-backed securities and specific commercial mortgages, mandating market-value-based replacement cost calculations for derivatives, and establishing specific regimes for real estate bonds and regional public sector exposures. The update also removes the 2% exemption threshold for foreign exchange risk coverage by 2005, introduces capital requirements for base metal risks, defines internal model usage, and eliminates concentration risk limits for linked enterprises included in consolidated supervision.
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