Board of Governors of the Federal Reserve System

Data Dictionary

Item Number G421

Call confidentiality applies to FFIEC 031/041.

Data Description:

Report the sum of the net current credit exposures on OTC derivative contracts by Sovereign Governments. The sum of the net current credit exposures reported in columns A through E for this item may not equal the amount reported in Schedule RC-R, Memorandum item 1, "Current credit exposure across all derivative contracts covered by the risk-based capital standards," because the amount reported in Schedule RC-R, Memorandum item 1, excludes, for example, OTC derivatives not covered by the risk-based capital standards. All transactions within the consolidated bank should be reported on a net basis. The current credit exposure (sometimes referred to as the replacement cost) is the fair value of a derivative contract when that fair value is positive. The current credit exposure is zero when the fair value is negative or zero. For purposes of this item, the net current credit exposure to an individual counterparty should be derived as follows: Determine whether a legally enforceable bilateral netting agreement is in place between the reporting bank and the counterparty. If such an agreement is in place, the fair values of all applicable derivative contracts with that counterparty that are included in the scope of the netting agreement are netted to a single amount, which may be positive, negative, or zero. FFIEC 031 Schedule RC-L LineItem 16.a. col. D. FFIEC 041 Schedule RC-L LineItem 16.a. col. D.