20-54 Under Basel II,OBS contingent guaranty contracts are assigned the same risk weights as on-balance-sheet principal items to determine their risk-adjusted asset values.

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Under Basel II, OBS contingent guaranty contracts are assigned the same risk weights as on-balance-sheet principal items to determine their risk-adjusted asset values. This means that they are treated as if they were on the balance sheet, and their risk is taken into account in determining the bank's overall risk-weighted assets.

20-54 Under Basel II,OBS Contingent Guaranty Contracts Are Assigned the Same