Directive 2006/48/EC of the European Parliament and of the council (repealed)Show full title

ANNEX II CLASSIFICATION OF OFF‐BALANCE‐SHEET ITEMS

Full risk:

• Guarantees having the character of credit substitutes,

• Credit derivatives,

• Acceptances,

• Endorsements on bills not bearing the name of another credit institution,

• Transactions with recourse,

• Irrevocable standby letters of credit having the character of credit substitutes,

• Assets purchased under outright forward purchase agreements,

• Forward forward deposits,

• The unpaid portion of partly‐paid shares and securities,

• Asset sale and repurchase agreements as defined in Article 12(3) and (5) of Directive 86/635/EEC, and

• Other items also carrying full risk.

Medium risk:

• Documentary credits issued and confirmed (see also ‘Medium/low risk’),

• Warranties and indemnities (including tender, performance, customs and tax bonds) and guarantees not having the character of credit substitutes,

• Irrevocable standby letters of credit not having the character of credit substitutes,

• Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of more than one year,

• Note issuance facilities (NIFs) and revolving underwriting facilities (RUFs), and

• Other items also carrying medium risk and as communicated to the Commission.

Medium/low risk:

• Documentary credits in which underlying shipment acts as collateral and other self‐liquidating transactions,

• Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of up to and including one year which may not be cancelled unconditionally at any time without notice or that do not effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness, and

• Other items also carrying medium/low risk and as communicated to the Commission.

Low risk:

• Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) which may be cancelled unconditionally at any time without notice, or that do effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness. Retail credit lines may be considered as unconditionally cancellable if the terms permit the credit institution to cancel them to the full extent allowable under consumer protection and related legislation, and

• Other items also carrying low risk and as communicated to the Commission.