Label: |
Total Direct Credit Substitutes |
Concept Guidance: |
This is the value, as at the relevant date, of direct credit substitutes. A direct credit substitute is any irrevocable off-balance sheet obligation that carries the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on which a potential claim is acquired).
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