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