Monday, November 21, 2011

BIS - *Gold/*Footnote (Part 2: The First Pillar ─ Minimum Capital Requirements)

[Mrt: How is gold perceived, footnote n.32 on the page 22]

"32 However, at national discretion, gold bullion held in own vaults or on an allocated basis to the extent backed by bullion liabilities can be treated as cash and therefore risk-weighted at 0%. In addition, cash items in the process of collection can be risk-weighted at 20%."

[Mrt: This comes after thinking about rating, rating risk, AAA rating should be 0 risk = cash, gold; other items against it, based on possibility to convert to them + risk to default (systemic+inherit).]

Source: http://www.bis.org/publ/bcbs118b.pdf

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