Basel Capital Accord: treatment of potential exposure for off-balance-sheet items

This document amends the treatment of off-balance-sheet items in the Basle Capital Accord of July 1988 in order to (a) recognise netting effects in the calculation of the "add-ons" for potential future exposure associated with certain off-balance-sheet items and (b) enlarge the matrix of add-ons to capture more accurately the potential future exposure associated with longer maturities and a broader range of transactions not explicitly covered in the original Accord. The amendment was effective from end-1995.