PET - Plain English Taxonomy

Attribute: CS21926
Concept:
Label: Performance-Related Contingencies
Concept Guidance:
This is the value, as at the relevant date, of any potential credit exposures arising from performance-related contingencies.           A performance-related contingency represents a contingent (off-balance sheet) liability that involves an irrevocable obligation to pay a third party in the event that a counterparty fails to fulfil or perform a contractual non-monetary obligation, such as delivery of goods by a specified date, etc (i.e. the risk of loss depends on a future event that is not directly related to the creditworthiness of the counterparty involved). This includes but is not limited to the following:     - issue of performance bond;     - bid bonds;     - warranties;     - indemnities; and     - standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction. 
Dimensions
Dimension Member Description
(CreditEquivalentAmount)
This dimension identifies the measurement scenario under which the reported value was calculated.
The value reported is the credit equivalent amount, as determined in accordance with relevant prudential standards. The credit equivalent amount (CEA) represents the on-balance sheet equivalent of an off-balance sheet exposure. In relation to a non-market-related off-balance sheet transaction, the CEA is calculated by multiplying the notional principal amount of a particular transaction by the relevant credit conversion factor. In relation to a market-related off-balance sheet transaction, the CEA is determined using the adjusted current exposure method.