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Recital 3

Recital 3

(3)For valuation positions for which a change in accounting valuation has only a partial or zero impact on Common Equity Tier 1 capital, AVAs should only be applied based on the proportion of the accounting valuation change that impacts Common Equity Tier 1 capital. These include positions subject to hedge accounting, Available-For-Sale positions to the extent their valuation changes are subject to a prudential filter and exactly matching, offsetting positions.

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