PET - Plain English Taxonomy

Attribute: CS14825
Concept:
Label: Off-Balance Sheet Credit Exposures
Concept Guidance:
This is the value, as at the relevant date, of off-balance sheet credit exposures.A credit exposure represents an asset, liability, claim or commitment of an entity, which may be recorded on or off the balance sheet and which gives rise to credit risk.This item is calculated for capital adequacy purposes and is to be determined in accordance with relevant Prudential Standards. 
Dimensions
Dimension Member Description
(ExposuresAtDefaultCRMAdjusted)
This dimension identifies the measurement scenario under which the reported value was calculated.
The value reported is the exposure at default (EAD) after taking into account the credit risk mitigation (CRM) techniques used by the reporting party. This amount is to be determined and adjusted for CRM in accordance with relevant prudential standards.EAD represents the gross exposure under a facility (i.e. the amount that is legally owed to the lending entity) upon default of the obligor.
(CommodityFinance)
This dimension categorises information reported based on the specialised lending methods defined under the Internal Ratings-based approach to credit risk, as determined in accordance with relevant prudential standards.
The information reported is in relation to the commodity finance method of funding under the Internal Ratings-based (IRB) approach to credit risk in accordance with relevant prudential standards.Commodity finance is structured short-term lending to finance reserves, inventories or receivables of commodities (e.g. crude oil, metals or crops) where the exposure will be repaid from the proceeds of the sale of the commodity and the obligor has no independent repayment capacity. This is the case when the obligor has no other activities or material assets on its balance sheet. The structured nature of the financing would be designed to compensate for the credit quality of the obligor. The lender's rating of the exposure would generally reflect its self-liquidating nature and the lender's capacity to structure the transaction rather than the credit quality of the obligor.This type of lending is generally distinguishable from exposures financing the reserves, inventories or receivables of other more diversified corporate obligors as the lender would be able to rate the credit quality of the latter type of obligors based on their broader ongoing operations. In such cases, the value of the commodity serves as a risk mitigant rather than as the primary source of repayment and the exposure would not generally be included as commodity finance.
(Default)
This dimension categorises information reported in relation to credit exposures, based on internal rating grades and associated prescribed supervisory slotting categories.These categories are used for capital adequacy purposes and are to be determined under the internal ratings-based supervisory slotting approach to credit risk, in accordance with relevant prudential standards.Each slotting category is associated with a specific risk-weight for unexpected losses that broadly corresponds to a range of external credit assessments.
The information reported relates to credit exposures allocated to the default supervisory slotting category, based on internal rating grades.This category is used for capital adequacy purposes and is to be determined under the internal ratings-based supervisory slotting approach to credit risk, in accordance with relevant prudential standards.