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CA-5.5.3

There are two approaches to calculate risk-weighted assets for equity exposures not held in the trading book: a market-based approach and a PD/LGD approach. Banks are permitted to select the approach subject to approval of CBB. Certain equity holdings are excluded as defined in paragraphs CA-5.5.18 to CA-5.5.20 and are subject to the capital charges required under the standardised approach.

Apr 08