---
kind: "section"
citation: "12 C.F.R. § 1240.31"
title: "12"
number: "1240.31"
heading: "Mechanics for calculating risk-weighted assets for general credit risk."
url: "https://uscodex.org/cfr/12/1240.31"
---

# §1240.31. Mechanics for calculating risk-weighted assets for general credit risk.

- (a) **General risk-weighting requirements.** An Enterprise must apply risk weights to its exposures as follows:
  - (1) An Enterprise must determine the exposure amount of each mortgage exposure, each other on-balance sheet exposure, each OTC derivative contract, and each off-balance sheet commitment, trade and transaction-related contingency, guarantee, repo-style transaction, forward agreement, or other similar transaction that is not:
    - (i) An unsettled transaction subject to [§ 1240.40](/cfr/12/1240.40.md);
    - (ii) A cleared transaction subject to [§ 1240.37](/cfr/12/1240.37.md);
    - (iii) A default fund contribution subject to [§ 1240.37](/cfr/12/1240.37.md);
    - (iv) A retained CRT exposure, acquired CRT exposure, or other securitization exposure subject to [§§ 1240.41 through 1240.46](/cfr/12/1240.41..1240.46.md);
    - (v) An equity exposure (other than an equity OTC derivative contract) subject to §§ [1240.51](/cfr/12/1240.51.md) and [1240.52](/cfr/12/1240.52.md); or
    - (vi) CVA risk-weighted assets subject to [§ 1240.36(d)](/cfr/12/1240.36.md?p=d).
  - (2) An Enterprise must multiply each exposure amount by the risk weight appropriate to the exposure based on the exposure type or counterparty, eligible guarantor, or financial collateral to determine the risk-weighted asset amount for each exposure.
- (b) **Total risk-weighted assets for general credit risk.** Total risk-weighted assets for general credit risk equals the sum of the risk-weighted asset amounts calculated under this section.

## Notes

### Amendments

[88 FR 82198, Dec. 17, 2020, as amended at 88 FR 83476, Nov. 30, 2023]

### Authority

Authority: 12 U.S.C. 4511, 4513, 4513b, 4514, 4515, 4517, 4526, 4611-4612, 4631-36.

### Source

Source: 85 FR 82198, Dec. 17, 2020, unless otherwise noted.

### Amendments

[88 FR 82198, Dec. 17, 2020, as amended at 88 FR 83476, Nov. 30, 2023]