Credit Guarantee Scheme

Risk weighting in FSA regulatory capital requirements

18. The Financial Services Authority has deemed that, under the Standardized Approach, guaranteed securities would qualify for zero risk weighting for capital adequacy purposes. For further information on capital adequacy please visit www.fsa.gov.uk.

Eligibility of guaranteed instruments as collateral in the Bank of England’s extended-collateral operations

19. The Bank of England has confirmed that instruments that are guaranteed under this Scheme will be eligible to be delivered as collateral in all its extended-collateral operations, so long as the guarantee applies. The haircuts applying to these securities are being published by the Bank today in a Market Notice available at www.bankofengland.co.uk.