CA-3.2.31
Past version: Effective from 01 Apr 2008 to 31 Mar 2011
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Where a bank has acquired assets on its balance sheet in the banking book which it is intending to place with third parties under a formal arrangement and is underwriting the placement, the following risk weightings apply during the underwriting period (which may not last for more than 90 days). Once the underwriting period has expired, the usual risk weights should apply.
(a) For holdings of private equity, a risk weighting of 100% will apply instead of the usual 150% (see CA-3.2.26).
(b) For holdings of Real Estate, a risk weight of 100% will apply instead of the usual 200% risk weight (see CA-3.2.29).
Apr 08