CA-4.7.25
Both the amount of exposure to counterparty and the value of collateral received are adjusted by using standard supervisory add-ons and haircuts as set out below with the exception of any exposures collateralised by own securities which are subject to treatment under Subparagraph CA-4.7.14(d) (and Chapter CA-2 as applicable):
| Types of Collateral* | Residual Maturity (yrs) | Haircuts (%) | |
| Sovereigns31 | Others | ||
| Cash on deposit | All | 0 | 0 |
| Sukuk | ≦1 | 0.5 | 1 |
| Long-term: AAA to AA- and | > 1 to ≦ 5 | 2 | 4 |
| Short-term: A-1 | > 5 | 4 | 8 |
| Sukuk | ≦1 | 1 | 2 |
| Long-term: A+ to BBB- and | > 1 to ≦ 5 | 3 | 6 |
| Short-term: A-2 to A-3 | > 5 | 6 | 12 |
| Sukuk | All | 15 | 15 |
| Long-term: BB+ to BB- | |||
| Sukuk (unrated) | All | 25 | 25 |
| Equities (listed and included in main index) | All | 15 | 15 |
| Equities (listed but not included in main index) | All | 25 | 25 |
| Units in collective investment schemes | All | Depending on the underlying assets as above | Depending on the underlying assets as above |
| Certain physical assets fulfilling the role of collateral in accordance with CA-4.7.10 (except real estate — see CA-4.2.19 to CA-4.2.20) | All | >=30 | >=30 |
* Collateral denominated in a different currency will also be subject to an additional 8% haircut to cater for foreign exchange risk (see Paragraph CA-4.7.26.
31 Includes PSEs and MDBs
January 2015