CA-5.3.5
The Agency will consider approving the exclusion of the above positions for the purpose of calculating the capital requirement, only if each of the following conditions is met:
(a) The concerned bank provides adequate documentary evidence to the Agency which establishes the fact that the positions proposed to be excluded are, indeed, of a structural nature (i.e. non-dealing) and are merely intended to protect the bank's capital adequacy ratio. For this purpose, the Agency may ask written representations from the bank's management or Directors.
(b) Any exclusion of a position is consistently applied, with the treatment of the structural positions remaining the same for the life of the associated assets or other items.