Korea Bank's Financial Institution Loan Regulations

Enacted: February 17, 1994 (Governor Approval: Self-Lending 5411-108) Amended: December 15, 1995 (Governor Approval: Self-Lending 5011-1081) Amended: August 19, 1999 (Governor Approval: Monetary 5011-684) Amended: April 20, 2000 (Governor Approval: Monetary 5011-282) Amended: June 30, 2000 (Governor Approval: Monetary 5011-490) Amended: September 7, 2000 (Governor Approval: Monetary 5011-660) Amended: November 24, 2000 (Governor Approval: Monetary 5011-774) Amended: December 26, 2000 (Governor Approval: Monetary 5011-858) Amended: January 5, 2001 (Governor Approval: Monetary 5011-6) Amended: June 21, 2001 (Governor Approval: Monetary 5011-240) Amended: October 23, 2001 (Governor Approval: Monetary 5011-439) Amended: November 6, 2001 (Governor Approval: Monetary 5011-466) Amended: December 24, 2001 (Governor Approval: Monetary 5011-525) Amended: June 29, 2002 (Governor Approval: Monetary 5011-168) Amended: June 30, 2005 (Governor Approval: Monetary 5412-140) Amended: May 25, 2006 (Governor Approval: Financial Planning Team-237) Amended: October 26, 2006 (Governor Approval: Financial Planning Team-570) Amended: January 24, 2008 (Governor Approval: Financial Planning Team-52) Amended: October 24, 2008 (Governor Approval: Financial Planning Team-583) Amended: December 22, 2009 (Governor Approval: Financial Planning Team-66) Amended: March 23, 2009 (Governor Approval: Financial Planning Team-240) Amended: April 21, 2009 (Governor Approval: Financial Planning Team-335) Amended: June 24, 2010 (Governor Approval: Financial Planning Team-424) Amended: April 25, 2013 (Governor Approval: Financial Planning Team-333) Amended: December 26, 2013 (Governor Approval: Financial Planning Team-1056) Amended: August 14, 2014 (Governor Approval: Financial Planning Team-636) Amended: April 24, 2015 (Governor Approval: Financial Planning Team-346) Amended: November 26, 2015 (Governor Approval: Financial Planning Team-891) Amended: March 22, 2016 (Governor Approval: Financial Planning Team-209) Amended: November 24, 2016 (Governor Approval: Financial Planning Team-789) Amended: August 30, 2017 (Governor Approval: Financial Planning Team-545) Amended: December 7, 2017 (Governor Approval: Financial Planning Team-754) Amended: September 16, 2019 (Governor Approval: Financial Planning Team-548) Amended: March 12, 2020 (Governor Approval: Financial Planning Team-200) Amended: March 26, 2020 (Governor Approval: Financial Planning Team-239) Amended: April 9, 2020 (Governor Approval: Financial Planning Team-311) Amended: September 10, 2020 (Governor Approval: Financial Planning Team-798) Amended: April 13, 2022 (Deputy Governor Approval: Financial Planning Team-246) Amended: October 27, 2022 (Governor Approval: Financial Planning Team-700) Amended: January 17, 2023 (Governor Approval: Financial Planning Team-85)
Amended: April 21, 2023 (Governor Approval: Financial Planning Team-315) Amended: July 27, 2023 (Governor Approval: Financial Planning Team-581) Amended: August 25, 2023 (Governor Approval: Financial Planning Team-667) Amended: November 24, 2023 (Governor Approval: Financial Planning Team-888) Amended: January 16, 2024 (Governor Approval: Financial Planning Team-73) Amended: March 15, 2024 (Governor Approval: Financial Planning Team-283) Amended: June 13, 2024 (Governor Approval: Financial Planning Team-625) Amended: July 24, 2025 (Governor Approval: Financial Planning Team-692) Amended: March 26, 2026 (Governor Approval: Financial Planning Team-271)

Chapter 1 General Provisions

Article 1 (Purpose)

These Regulations are intended to stipulate detailed matters necessary for the implementation of the "Korea Bank's Financial Institution Loan Regulations" (hereinafter referred to as the "Regulations").

Article 1-2 (Basic Requirements for Securities Eligible for Rediscount and Securities-Backed Loans)

① Credit securities obtained under Item 1 of Article 4, Paragraph 1 of the Regulations shall be classified as normal loans according to the asset soundness classification criteria under Article 34, Paragraph 2 of the "Banking Act" and Article 20, Paragraph 1, Item 2 of the "Enforcement Decree of the Banking Act." However, any of the following may not be acquired as rediscount or loan-collateral securities:

1. Credit securities obtained through loans to major shareholders (as defined in Article 2, Paragraph 1, Item 10 of the "Banking Act"), subsidiaries (as defined in Article 37 of the "Banking Act"), or affiliated companies (as defined in Article 2, Paragraph 12 of the "Monopoly Regulation and Fair Trade Act").
2. Credit securities issued by a single borrower, where the total amount of credit securities provided by financial institutions as collateral for loans to the Korea Bank exceeds 10% of the total amount of credit securities provided by that financial institution.

② Circulating securities that the Korea Bank may acquire as collateral under Items 2 through 13 of Article 4, Paragraph 1 of the Regulations must meet the following requirements:

1. The security amount must be denominated in Korean Won.
2. The principal must be fixed.
3. The interest rate must be fixed or linked to market interest rates or prices. However, the interest rate must be 0% or higher.

③ Notwithstanding Paragraph 2, securities of any of the following types may not be acquired as loan-collateral securities:

1. Subordinated bonds.
2. Convertible bonds, bonds with share subscription warrants, and exchangeable bonds.
3. Securities issued by major shareholders (as defined in Article 2, Paragraph 1, Item 10 of the "Banking Act"), subsidiaries (as defined in Article 37 of the "Banking Act"), or affiliated companies (as defined in Article 2, Paragraph 12 of the "Monopoly Regulation and Fair Trade Act").
4. Securities issued through private placement (as defined in Article 9, Paragraph 8 of the "Capital Markets and Financial Investment Services Act").

Article 1-3 (Collateral Valuation)

① The collateral valuation of securities acquired by the Korea Bank as collateral for loans shall be as specified in the <Appendix Table>.
② Securities under Items 2 and 3 of Article 4, Paragraph 1 of the Regulations shall be classified as Group 1, and securities under Items 1 and 4 through 13 shall be classified as Group 2. However, the total collateral valuation of Group 1 securities for each financial institution must be at least 40% of the total collateral valuation of that financial institution's loan-collateral securities.

Chapter 2 Liquidity Adjustment Loans

Article 2 (Application for Liquidity Adjustment Loans)

① Financial institutions seeking to borrow liquidity adjustment loans under Item 1 of Article 2 of the Regulations must apply for loans to the Director of the Korea Bank's Financial Business Bureau (hereinafter referred to as the "Director of the Financial Business Bureau") or the Director of a Korea Bank regional headquarters (hereinafter referred to as the "Regional Headquarters Director"). ② Loan applications under Paragraph 1 must be submitted by 10 minutes after the cutoff time for intraday overdraft loan repayment as specified in Article 15 of the Regulations.

Article 3 (Execution of Liquidity Adjustment Loans)

Liquidity adjustment loans shall be executed by the Director of the Financial Business Bureau or the Regional Headquarters Director.

Chapter 3 Financial Intermediation Support Loans

Article 4 (Allocation Criteria for Program Limits)

Matters regarding the scope of loans by financial institutions reflected in the allocation of limits per program under Article 11 of the Regulations shall be determined by the Governor.

Article 5 (Operation of Reserved Limits)

① Reserved limits operated under Paragraph 3 of Article 11 of the Regulations shall be categorized as follows:

1. Special Support for Disaster Recovery
2. Temporary Special Support for Small and Medium-sized Enterprises

② The criteria for operating the programs under each item of Paragraph 1 shall be separately determined by the Governor.

Article 6 (Execution of Financial Intermediation Support Loans)

① Loans under the Trade Finance Support Program, New Growth/Employment Support Program, and Small and Medium-sized Enterprise Loan Stabilization Program shall be executed by the Director of the Financial Business Bureau for financial institutions with their main office in Seoul, and by the relevant Regional Headquarters Director for financial institutions with their main office in other regions. ② Loans under the Local Small and Medium-sized Enterprise Support Program shall be executed by the Regional Headquarters Director.

Chapter 4 Intraday Overdraft Loans

Article 7 (Interest Collection on Intraday Overdraft Loans, etc.)

① A certain percentage of financial institutions' own capital under Paragraph 1 of Article 17 of the Regulations shall be 25%.
② The scale of intraday overdraft loans subject to interest collection under Paragraph 1 of Article 17 of the Regulations shall be calculated by dividing the cumulative deficit of the loan amount (calculated in minutes of usage) by 681. (If there is a balance in general checking accounts or payment-only checking accounts under Article 16, Paragraph 2 of the "Payment and Settlement Systems Operation and Management Regulations," the balance shall be deducted from the loan amount within that scope.) ③ The financial institutions' own capital under Paragraph 1 shall be calculated based on the end of June and the end of December each year. The capital calculated based on the end of June shall apply from October of that year to March of the following year, and the capital calculated based on the end of December shall apply from April to September of the following year. However, in cases of capital changes due to mergers or capital increases, the Director of the Korea Bank's Monetary Policy Bureau (hereinafter referred to as the "Director of the Monetary Policy Bureau") may determine different calculation基准 dates and application periods for the own capital upon application by the financial institution.

Article 8 (Execution of Intraday Overdraft Loans)

Intraday overdraft loans shall be executed by the Director of the Financial Business Bureau, the Director of the Financial Settlement Bureau, or the Regional Headquarters Director for financial institution settlement centers that have concluded loan transaction agreements with the Korea Bank.

Chapter 5 Supplementary Provisions

Article 9 (Submission of Data)

Financial institutions that have borrowed or been approved for loan limits for liquidity adjustment loans, financial intermediary support loans, or intraday overdraft loans from the Korea Bank, or those seeking to borrow, must submit loan performance data under Article 4 and other data required by the Korea Bank.

Article 10 (Penalties)

① If a financial institution submits false data under Article 9, fails to comply with data submission requests, or violates the Regulations or other rules to obtain loans, penalty measures such as reduction of loan limits or recovery of existing loans may be imposed. ② If a financial institution falls under any of the following, a penalty interest rate may be applied to financial intermediary support loans within the range of 1 percentage point higher than the liquidity adjustment loan interest rate for a period of up to 6 months:

1. The financial institution repeatedly submits false data under Article 9 or engages in forgery or alteration.
2. The financial institution repeatedly receives correction requests or warnings under Article 37 of the "Korea Bank's Deposit and Loan Handling Procedures" within one year.

Article 11 (Reporting to the Financial Services and Monetary Policy Committee)

The Director of the Monetary Policy Bureau is responsible for reporting loan operation results under Article 20 of the Regulations, and the Director of the Financial Business Bureau is responsible for reporting the results of penalties imposed on financial institutions.

Article 12 (Delegation, etc.)

① Detailed matters necessary for the implementation of these Regulations shall be determined by the Director of the Monetary Policy Bureau. However, matters regarding loan execution and penalties (limited to the execution of penalties in the case of Article 10, Paragraph 2) shall be determined by the Director of the Financial Business Bureau. ② Notwithstanding Paragraph 1, inspection operations for financial institutions restricted from liquidity adjustment loans under Paragraph 2 of Article 6 of the Regulations shall be handled by the Director of the Korea Bank's Financial Stability Bureau.

Supplementary Provisions <February 17, 1994>

① (Effective Date) These Regulations shall take effect from March 15, 1994.
② (Repeal Provisions) Simultaneously with the implementation of these Regulations, the "Defense Industry Support Financial Handling Regulations" (Enacted December 16, 1976, Self-Lending 502-1967), the "Export Industry and Import-Substituting Materials/Components Industry Facility Loan Handling Regulations" (Enacted September 11, 1986, Self-Lending 5416-619), the "Korea Bank's Local Small and Medium-sized Enterprise Fund Loan Handling Regulations" (Enacted December 15, 1989, Assets 5011-442), and the "Korea Bank's Regulations on Rediscount and Loans to Financial Institutions" (Enacted March 30, 1983, Monetary 521-250) are repealed. ③ (Transitional Measures) For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <December 15, 1995>

These Regulations shall take effect from January 1, 1996.

Supplementary Provisions <August 19, 1999>

Article 1 (Effective Date) These Regulations shall take effect from September 1, 1999.

Article 2 (Repeal Provisions) Simultaneously with the implementation of these Regulations, the "Korea Bank Total Limit Loan Branch Limit Operation Regulations" (Enacted February 17, 1994, Assets 5610-43) is repealed.

Article 3 (Transitional Measures) Industries selected by the Governor as targets for branch-by-branch limit allocation for financial institutions prior to the implementation of these Regulations shall be deemed as selected by branch managers under Article 4, Paragraph 1, Item 2.

Supplementary Provisions <April 20, 2000>

These Regulations shall take effect from May 22, 2000.

Supplementary Provisions <June 30, 2000>

These Regulations shall take effect from June 30, 2000.

Supplementary Provisions <September 7, 2000>

Article 1 (Effective Date) These Regulations shall take effect from September 30, 2000.

Article 2 (Transitional Measures) Matters regarding the deposit of collateral for intraday overdraft loans specified in Article 13 shall take effect from November 1, 2000.

Supplementary Provisions <November 24, 2000>

Article 1 (Effective Date) These Regulations shall take effect from December 1, 2000.

Article 2 (Transitional Measures) Notwithstanding Article 6, Paragraph 2, the total branch limits for December 2000 shall be allocated based on the performance of bill loan handling among general operating fund loans, according to previous regulations.

Supplementary Provisions <December 26, 2000>

Article 1 (Effective Date) These Regulations shall take effect from January 2, 2001.

Article 2 (Transitional Measures) For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <January 5, 2001>

These Regulations shall take effect from February 12, 2001.

Supplementary Provisions <June 21, 2001>

These Regulations shall take effect from July 1, 2001.

Supplementary Provisions <October 23, 2001>

These Regulations shall take effect from December 1, 2001.

Supplementary Provisions <November 6, 2001>

These Regulations shall take effect from November 10, 2001.

Supplementary Provisions <December 24, 2001>

These Regulations shall take effect from January 1, 2002.

Supplementary Provisions <June 29, 2002>

Article 1 (Effective Date) These Regulations shall take effect from July 2, 2002.

Article 2 (Transitional Measures) For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <June 30, 2005>

Article 1 (Effective Date) These Regulations shall take effect from October 1, 2005.

Supplementary Provisions <May 25, 2006>

Article 1 (Effective Date) These Regulations shall take effect from September 1, 2006.

Supplementary Provisions <October 26, 2006>

Article 1 (Effective Date) These Regulations shall take effect from January 1, 2007.

Article 2 (Repeal Provisions) Simultaneously with the implementation of these Regulations, the "Korea Bank Total Limit Loan Commercial Bill Discount Handling Regulations," the "Korea Bank Total Limit Loan Materials/Components Production Fund Loan Handling Regulations," and the "Korea Bank Total Limit Loan Materials/Components Production Fund Loan Handling Procedures" are repealed.

Supplementary Provisions <January 24, 2008>

① (Effective Date) These Regulations shall take effect from March 7, 2008.
② (Transitional Measures) For loans handled prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <October 24, 2008>

These Regulations shall take effect from November 3, 2008.

Supplementary Provisions <December 22, 2009>

These Regulations shall take effect from February 9, 2009.

Supplementary Provisions <March 23, 2009>

These Regulations shall take effect from April 1, 2009.

Supplementary Provisions <April 21, 2009>

These Regulations shall take effect from April 27, 2009.

Supplementary Provisions <June 24, 2010>

These Regulations shall take effect from July 1, 2010.

Supplementary Provisions <April 25, 2013>

① (Effective Date) These Regulations shall take effect from May 1, 2013.
② (Transitional Measures) For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <December 26, 2013>

Article 1 (Effective Date) These Regulations shall take effect from December 26, 2013.

Article 2 (Transitional Measures) For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <August 14, 2014>

These Regulations shall take effect from September 1, 2014.

Supplementary Provisions <April 24, 2015>

Article 1 (Effective Date) These Regulations shall take effect from May 1, 2015.

Article 2 (Repeal of Other Regulations) The "Korea Bank Financial Intermediation Support Loan Credit Loan Support Program Operation Regulations" and the "Korea Bank Financial Intermediation Support Loan Credit Loan Support Program Operation Procedures" are repealed.

Article 3 (Transitional Measures)
① For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.
② Penalties for violations discovered after the implementation date regarding credit loans handled by financial institutions under the previous "Korea Bank Financial Intermediation Support Loan Credit Loan Support Program Operation Regulations" and "Korea Bank Financial Intermediation Support Loan Credit Loan Support Program Operation Procedures" prior to the implementation date shall be deducted from the Korea Bank's Financial Intermediation Support Loan Trade Finance Support Program limit.

Supplementary Provisions <November 26, 2015>

Article 1 (Effective Date) These Regulations shall take effect from January 1, 2016.

Article 2 (Validity Period)
① Article 1-2, Paragraph 2 shall remain valid until December 31, 2018.
② Matters related to housing mortgage securities issued by the Korea Housing Finance Corporation in the <Appendix Table> shall remain valid until December 31, 2018.

Supplementary Provisions <March 22, 2016>

Article 1 (Effective Date) These Regulations shall take effect from March 1, 2016.

Article 2 (Transitional Measures) Technology-based startup support programs prior to the implementation of these Regulations shall be regarded as startup support programs under these Regulations.

Supplementary Provisions <November 24, 2016>

These Regulations shall take effect from November 24, 2016.

Supplementary Provisions <August 30, 2017>

Article 1 (Effective Date) These Regulations shall take effect from September 1, 2017.

Article 2 (Transitional Measures)
① For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.
② Startup support programs prior to the implementation of these Regulations shall be regarded as New Growth/Employment Support Programs under these Regulations.

Article 3 (Repeal of Other Regulations) Simultaneously with the implementation of these Regulations, the "Korea Bank's Financial Intermediation Support Loan Facility Investment Support Program Operation Regulations" and the "Korea Bank's Financial Intermediation Support Loan Facility Investment Support Program Operation Procedures" are repealed.

Supplementary Provisions <December 7, 2017>

These Regulations shall take effect from December 7, 2017.

Supplementary Provisions <September 16, 2019>

Article 1 (Effective Date) These Regulations shall take effect from November 13, 2019.

Article 2 (Transitional Measures) For loans already handled prior to the implementation of these Regulations, the previous regulations shall apply.

Article 3 (Repeal of Other Regulations) Simultaneously with the implementation of these Regulations, the "Korea Bank Financial Intermediation Support Loan Small-Scale Self-Employed Person Support Program Operation Regulations" and the "Korea Bank Financial Intermediation Support Loan Small-Scale Self-Employed Person Support Program Operation Procedures" are repealed.

Supplementary Provisions <March 12, 2020>

These Regulations shall take effect from April 1, 2020.

Supplementary Provisions <March 26, 2020>

Article 1 (Effective Date) These Regulations shall take effect from April 1, 2020.

Article 2 (Validity Period) Article 1-2, Paragraphs 2 and 3, Article 1-3, Paragraph 2, and matters related to Items 8 through 18 of Article 4, Paragraph 1 of the "Korea Bank's Financial Institution Loan Regulations" in the <Appendix Table> shall remain valid until March 31, 2021.

Supplementary Provisions <April 9, 2020>

Article 1 (Effective Date) These Regulations shall take effect from April 14, 2020.

Article 2 (Validity Period) Article 1-2, Paragraphs 2 and 3, Article 1-3, Paragraph 2, and matters related to Items 8 and 9 of Article 4, Paragraph 1 of the "Korea Bank's Financial Institution Loan Regulations" in the <Appendix Table> shall remain valid until March 31, 2021.

Supplementary Provisions <September 10, 2020>

These Regulations shall take effect from the date determined by the Governor.
(Implemented from October 12, 2020, by Financial Planning Team-876 (Governor Approval, October 5, 2020))

Supplementary Provisions <April 13, 2022>

These Regulations shall take effect from May 2, 2022.

Supplementary Provisions <October 27, 2022>

Article 1 (Effective Date) These Regulations shall take effect from November 1, 2022.

Article 2 (Validity Period) Repealed <July 27, 2023>

Supplementary Provisions <January 17, 2023>

These Regulations shall take effect from January 31, 2023.

Supplementary Provisions <April 21, 2023>

These Regulations shall take effect from April 30, 2023.

Supplementary Provisions <July 27, 2023>

These Regulations shall take effect from July 31, 2023.

Supplementary Provisions <August 25, 2023>

These Regulations shall take effect from August 31, 2023.

Supplementary Provisions <November 24, 2023>

These Regulations shall take effect from December 1, 2023.

Supplementary Provisions <January 16, 2024>

These Regulations shall take effect from February 1, 2024.

Supplementary Provisions <March 15, 2024>

Article 1 (Effective Date) These Regulations shall take effect from April 1, 2024.

Article 2 (Transitional Measures) For loans already handled under the previous regulations prior to the implementation of these Regulations, the previous regulations shall apply.

Supplementary Provisions <June 13, 2024>

These Regulations shall take effect from September 2, 2024.

Supplementary Provisions <July 24, 2025>

These Regulations shall take effect from July 24, 2025. However, the amended parts regarding the application and execution of penalty interest rates in Articles 10 and 12 shall take effect from January 1, 2026.

Supplementary Provisions <March 26, 2026>

These Regulations shall take effect from March 30, 2026.

<Appendix Table> Collateral Valuation for Korea Bank Loans

Collateral Valuation for Korea Bank Loans

1. For securities under Items 2 through 13 of Article 4, Paragraph 1 of the Regulations that have formed market prices, the amount is calculated by applying the following ratios to the market price based on remaining maturity and principal/interest payment methods:

Securities	Remaining Maturity 1 year or less	Remaining Maturity >1 year to 3 years or less	Remaining Maturity >3 years to 5 years or less	Remaining Maturity >5 years to 10 years or less	Remaining Maturity >10 years
Securities under Items 2 and 3 of Article 4, Paragraph 1 of the Regulations	-	98 (98)	97 (96)	96 (95)	95 (94)	93 (92)
Securities under Item 10 of Article 4, Paragraph 1 of the Regulations	96 (96)	95 (94)	94 (93)	93 (92)	92 (91)	-
Securities under Items 4 through 8 of Article 4, Paragraph 1 of the Regulations	AAA: 96 (96)	AAA: 95 (94)	AAA: 94 (93)	AAA: 93 (92)	AAA: 92 (91)	AA+: 95 (95) AA: 94 (93) AA+: 93 (92) AA: 92 (91) AA+: 91 (90) AA: 90 (89)
Securities under Item 11 of Article 4, Paragraph 1 of the Regulations	AAA: 95 (95)	AAA: 94 (93)	AAA: 93 (92)	AAA: 92 (91)	AAA: 91 (90)	AA+: 94 (94) AA: 93 (92) AA+: 92 (91) AA: 91 (90) AA+: 90 (89) AA: 89 (88)
Securities under Item 9 of Article 4, Paragraph 1 of the Regulations and Item 12 of Article 4, Paragraph 1 of the Regulations	AAA: 94 (94)	AAA: 93 (92)	AAA: 92 (91)	AAA: 91 (90)	AAA: 90 (89)	AA+: 93 (93) AA: 92 (91) AA+: 91 (90) AA: 90 (89) AA+: 89 (88) AA: 88 (87)
Securities under Item 13 of Article 4, Paragraph 1 of the Regulations	AAA: 90 (90)	AAA: 88 (87)	AAA: 87 (86)	AAA: 86 (85)	AAA: 85 (84)	AA+: 85 (85) AA: 83 (82) AA+: 82 (81) AA: 81 (80) AA+: 80 (79) AA: 79 (78)

Note: 1) Refers to credit ratings obtained from one or more credit rating agencies as defined in the "Capital Markets and Financial Investment Services Act." If ratings from two or more agencies differ, the lowest rating shall be used.
2) Remaining maturity is based on the market price evaluation date.
3) Excludes securities issued by financial institutions (companies operating "Financial and Insurance Business" under the "Korea Standard Industrial Classification," excluding non-financial holding companies) and securitization companies.
4) Collateral valuation ratios are based on coupon bonds; values in parentheses ( ) apply to discount bonds or bonds where principal and interest are paid at maturity.

2. For securities under Items 2 through 12 of Article 4, Paragraph 1 of the Regulations that have not formed market prices, 80% of the face value (or issue price if issued at a discount) shall apply. For securities under Item 13 that have not formed market prices, 70% of the face value (or issue price if issued at a discount) shall apply.

3. For securities under Item 1 of Article 4, Paragraph 1 of the Regulations, 70% of the financial institution's loan principal shall apply.