Under the current risk-based capital requirements, banks must hold capital against standby letters of credit they have issued as guarantees.

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Under the current risk-based capital requirements, banks must hold capital against standby letters of credit they have issued as guarantees. This is because standby letters of credit represent potential claims on a bank's capital and liquidity. Banks must ensure that they have enough capital to cover any potential losses that may arise from standby letters of credit.

Under the Current Risk-Based Capital Requirements, Banks Must Hold Capital