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C2 - 2026 - Circular on matters relating to the use of implicit support.
Published Date:
2026-08-03
Last Modified Date:
2026-08-03, 14:21
Category:
PA Deposit-takers > Banks Circulars
This Circular provides clarity on the use of implicit support assumptions in internal credit risk-rating processes in the determination of regulatory minimum required capital and reserve funds, for banks that have been approved to use the internal ratings-based approach for credit risk. Furthermore, the scope of circular extends to bank exposures reported under the standardised approach, for which external credit ratings must not incorporate assumptions of implicit government support.