(a) The exposures are revolving, unsecured, and uncommitted (both contractually and in practice). In this context, revolving exposures are defined as those where customers' outstanding balances are permitted to fluctuate based on their decisions to borrow and repay, up to a limit established by the bank;

(b) The exposures are to individuals;

(c) The maximum exposure to a single individual in the sub-portfolio is BD 25,000 or less;

(d) Because the asset correlation assumptions for the QRRE risk-weight function are markedly below those for the other retail risk-weight function at low PD values, banks must demonstrate that the use of the QRRE risk-weight function is constrained to portfolios that have exhibited low volatility of loss rates, relative to their average level of loss rates, especially within the low PD bands. CBB will review the relative volatility of loss rates across the QRRE subportfolios, as well as the aggregate QRRE portfolio;

(e) Data on loss rates for the sub-portfolio must be retained in order to allow analysis of the volatility of loss rates; and

(f) CBB must concur that treatment as a qualifying revolving retail exposure is consistent with the underlying risk characteristics of the sub-portfolio.