Prudential Regulation Authority Rulebook

The following assets and off-balance sheet items shall be subject to a 85% required stable funding factor:

1. (a) any assets and off-balance sheet items, including cash, posted as initial margin for derivative contracts or posted as contribution to the default fund of a CCP, unless those assets would be assigned a higher required stable funding factor in accordance with Article 428az if held unencumbered, in which case the higher required stable funding factor that would apply to those assets if they were held unencumbered shall apply;
2. (b) unencumbered loans with a residual maturity of one year or more, excluding loans to financial customers, which are not past due for more than 90 days, unless otherwise specified in Article 428axa(1);
3. (c) trade finance on-balance sheet related products with non-financial customers with a residual maturity of one year or more;
4. (d) unencumbered securities with a residual maturity of one year or more that are not in default in accordance with Article 178 and that are not eligible as liquid assets pursuant to Chapter 2 of the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook, unless otherwise specified in Article 428axa(2);
5. (e) unencumbered exchange-traded equities that are not eligible as level 2B assets pursuant to Article 428ax;
6. (f) physically traded commodities, including gold but excluding commodity derivatives, unless otherwise specified in Article 428f;
7. (g) unencumbered loans secured by mortgages on residential property with a residual maturity of one year or more, provided that those loans are assigned a risk weight of more than 35% in accordance with Chapter 2 of Title II of Part Three of the CRR.