Clarity on minimum boundary

General
1

Hi,

In the process of developing targets for a bank. We have some questions on minimum boundary.

Our balance consists of:
60% Mortgages (indicated in FINT V2 as optional)
15% Long term commercial real estate (indicated as required)
5% Equity investments in listed companies (indicated as required)
10% Sovereign bonds (indicated as out of scope)
10% other (indicated as out of scope)

The 67% boundary coverage is met with mortgages + long term commercial real estate (main business of the bank). However, the equity investments are a required category. Do we still have to set a target on the equity investments?

Key question: do targets for required sub-asset-classes still have to be set if the 67% boundary is already met with other categories.

Thank you for the clarification.
Stef

2

Required sub-asset classes must be covered with targets AND the 67% coverage floor must be met. However, there is a 5% materiality exclusion option available in certain cases. Please see FI-C15 and Figure A-1 in the Financial Institutions Near-Term Criteria Version 2 for more details.