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Title[ Part 2: The First Pillar - Minimum Capital Requirements

Section[ 5. Claims on securities firms

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65.       Claims on securities firms may be treated as claims on banks provided these firms are subject to supervisory and regulatory arrangements comparable to those under this Framework  (including,  in  particular,  risk-based  capital  requirements). ²⁷  Otherwise  such claims would follow the rules for claims on corporates.

27   That is, capital requirements that are comparable to those applied to banks in this Framework. Implicit in the meaning  of the  word “comparable” is that the securities firm (but not  necessarily its parent) is subject to consolidated regulation and supervision with respect to any downstream affiliates.

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