{"data":{"id":"us/12-cfr-3.33","jurisdiction":"us","citation":"12 CFR 3.33","heading":"Off-balance sheet exposures.","body":"(a) General. (1) A national bank or Federal savings association must calculate the exposure amount of an off-balance sheet exposure using the credit conversion factors (CCFs) in paragraph (b) of this section.\n(2) Where a national bank or Federal savings association commits to provide a commitment, the national bank or Federal savings association may apply the lower of the two applicable CCFs.\n(3) Where a national bank or Federal savings association provides a commitment structured as a syndication or participation, the national bank or Federal savings association is only required to calculate the exposure amount for its pro rata share of the commitment.\n(4) Where a national bank or Federal savings association provides a commitment, enters into a repurchase agreement, or provides a credit-enhancing representation and warranty, and such commitment, repurchase agreement, or credit-enhancing representation and warranty is not a securitization exposure, the exposure amount shall be no greater than the maximum contractual amount of the commitment, repurchase agreement, or credit-enhancing representation and warranty, as applicable.\n(b) Credit conversion factors—(1) Zero percent CCF. A national bank or Federal savings association must apply a zero percent CCF to the unused portion of a commitment that is unconditionally cancelable by the national bank or Federal savings association.\n(2) 20 percent CCF. A national bank or Federal savings association must apply a 20 percent CCF to the amount of:\n(i) Commitments with an original maturity of one year or less that are not unconditionally cancelable by the national bank or Federal savings association; and\n(ii) Self-liquidating, trade-related contingent items that arise from the movement of goods, with an original maturity of one year or less.\n(3) 50 percent CCF. A national bank or Federal savings association must apply a 50 percent CCF to the amount of:\n(i) Commitments with an original maturity of more than one year that are not unconditionally cancelable by the national bank or Federal savings association; and\n(ii) Transaction-related contingent items, including performance bonds, bid bonds, warranties, and performance standby letters of credit.\n(4) 100 percent CCF. A national bank or Federal savings association must apply a 100 percent CCF to the amount of the following off-balance-sheet items and other similar transactions:\n(i) Guarantees;\n(ii) Repurchase agreements (the off-balance sheet component of which equals the sum of the current fair values of all positions the national bank or Federal savings association has sold subject to repurchase);\n(iii) Credit-enhancing representations and warranties that are not securitization exposures;\n(iv) Off-balance sheet securities lending transactions (the off-balance sheet component of which equals the sum of the current fair values of all positions the national bank or Federal savings association has lent under the transaction);\n(v) Off-balance sheet securities borrowing transactions (the off-balance sheet component of which equals the sum of the current fair values of all non-cash positions the national bank or Federal savings association has posted as collateral under the transaction);\n(vi) Financial standby letters of credit; and\n(vii) Forward agreements.","path":["Title 12—Banks and Banking","CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY","PART 3—CAPITAL ADEQUACY STANDARDS","Subpart D—Risk-Weighted Assets—Standardized Approach"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"1c8c0f729115921282dd638d11c1f96fb9d1ec3c6ec86ecfb644f874b55b0876","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-3.32","next":"us/12-cfr-3.34"},"notice":"GroundRules: Original legal text. Not legal advice."}