PRU A10.4.19

An Authorised Person must calculate the Required Stable Funding that it needs for its off-balance sheet items, including potential liquidity exposures, by:

(a) assigning each off-balance sheet items to one of the RSF off-balance categories in the following table;
(b) multiplying the value of each of those items by the RSF factor associated with that off-balance sheet category; and
(c) summing those weighted values.
RSF factor RSF off-balance sheet category
5% of the currently undrawn portion • Irrevocable and conditionally revocable credit and liquidity facilities to any client
National discretion 5% • Other contingent funding obligations, including products and instruments such as:
3% o unconditionally revocable credit and liquidity facilities
10% o trade finance-related obligations (including guarantees and letters of credit)

o non-contractual obligations such as:

• potential requests for debt repurchases of the bank’s own debt or that of related conduits, securities investment vehicles and other such financing facilities

• structured products where customers anticipate ready marketability, such as adjustable rate notes and variable rate demand notes (VRDNs)

• managed funds that are marketed with the objective of maintaining a stable value