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LM-11.3.9

Secured funding is defined as those liabilities and general obligations that are collateralised by legal rights to specifically designated assets owned by the bank in the case of bankruptcy, insolvency, liquidation or resolution. The amount of outflow is calculated based on the amount of funds raised through the transaction, and not the value of the underlying collateral. The table below summarises the applicable factors:

Categories for outstanding maturing secured Amount to add to cash flows %
Backed by Level 1 assets or with central banks 0%
Bank by Level 2A assets 15%
•   Secured funding transactions with domestic sovereign, PSE or multilateral development bank that are not backed by Level 1 or 2 assets
•   Backed by RMBS eligible for inclusion in Level 2B
25%
Backed by other Level 2B assets 50%
All other transactions 100%
August 2018