CA-3.5.23
IMB
| Applicable Stage of the Contract | Credit RW | Market Risk Capital Charge |
| Asset available for lease (prior to signing a lease contract) | Binding PL* Asset acquisition cost less (a) market value of asset fulfilling function of collateral (net of any haircuts), and (b) any HJ multiplied by customer's rating or 100% RW for unrated customer |
Non-binding PL 15% capital charge until lessee takes possession |
| When the lessee has the right to use the asset and the lease rental payments are due from the lessee | Total estimated value of lease receivables for the whole duration of leasing contract is risk-weighted according to the lessee's credit rating. 100% RW for an unrated lessee less residual value of the leased asset | Not applicable |
| Maturity of contract term and the leased asset is sold and theasset ownership is transferred to the lessee | Not applicable | Not applicable |
* This credit RW is applicable only when the bank has recourse to any HJ paid by the customer. In the case of HJ (depending on the legal situation), the bank may have a right to recoup from the customer any loss on leasing or disposing of the asset to a third party, after taking account of the HJ, while any excess HJ must be refunded. If the bank has no such right, the cost of the asset to the bank constitutes a
January 2015