(3)In order to reflect the internationally agreed standards on assigning risk weights to specialised lending exposures, as specified by the Basel Committee on Banking Supervision in the Basel II framework 2 , and to take into account the large number of variations in specialised lending exposures, different assessment criteria should be applied to each of those classes of specialised lending exposures when applying the factors. Before assigning a risk weight to a specialised lending exposure, institutions should determine to which of those classes the specialised lending exposure most closely corresponds.
Recital 3
- 2 International Convergence of Capital Measurement and Capital Standards, A Revised Framework, Comprehensive Version, June 2006. ↩