If a bank in exposure sub-class A holds capital in the form of CET1 capital amounting to at least 14% of all risk-weighted exposures (Art. 42b) and at least 5% of total exposure (Art. 42a), a risk weight of 30% shall apply to exposures to that bank under Annex 2 No 4.2.
Exposures to a bank in exposure sub-class A, B or C must receive at least the risk weight for exposures to the home jurisdiction of that bank if:
exposures to that bank are not recorded in the domestic currency of the home jurisdiction; or
exposures to a branch of that bank are not recorded in the domestic currency of the jurisdiction in which the branch operates.
Paragraph 2 shall not apply to self-liquidating trade-related contingent funding obligations with a remaining maturity of less than a year arising from the movement of goods.
Banks in categories 4 and 5 under Annex 3 BankO150 may waive the allocation to exposure sub-classes for exposures to a bank without an external rating. This also applies to banks in category 3 under Annex 3 BankO which have insignificant exposures to banks without an external rating. If banks waive the use of exposure sub-classes, the claims shall be assigned a risk weight of 35% or 60%, depending on their original maturity (Annex 3 No 4). FINMA shall issue technical implementing provisions.