CA-3.2.31
Underwritings of capital instruments issued by other banking, financial or insurance entities are covered in Subparagraphs CA-2.4.16(c) and CA-2.4.20(c). The large exposures limits of Chapter CM-5 apply for underwritings. This means the 800% risk weights will apply for underwriting exposures in excess of the limits set in Chapter CM-5. The risk weights below apply for exposures within the limits of Module CM-5. Where a
(a) For holdings of private equity (non-bank), a risk weighting of 100% applies instead of the usual 150% (see CA-3.2.26); and
(b) For holdings of Real Estate, a risk weight of 100% applies instead of the usual 200% risk weight (see CA-3.2.29).
January 2015