Standardised guarantees are treated as giving rise to financial assets and not contingent assets Even though the degree of probability of any one standardised guarantee being called is uncertain, the fact that there are many similar guarantees means that a reliable estimate of the number of calls under the guarantee can be made. Examples are export credit guarantees or student loan guarantees.

standardised guarantees are issued in large numbers, usually for fairly small amounts.Such derivatives are based on the risk of default of reference financial assets and are not linked to individual loans or debt securities guarantees provided by means of a financial derivative, such as a credit default swap.No special treatment is proposed for guarantees in the form of manufacturers' warrantees or other forms of guarantee. These apply only to guarantees provided in the case of financial assets. Three different types of guarantees are distinguished. Such pension entitlements are recorded in the supplementary table on accrued-to-date pension entitlements in social insurance, and not in the core accounts.ī5.1.2. pension entitlements under unfunded government defined benefit employer pension schemes or social security pension funds.underwritten note issuance facilities (NIFs) providing a guarantee that a potential debtor will be able to sell short-term debt securities known as notes, and that the bank issuing the facility will take up any notes not sold on the market or will provide equivalent advances and.lines of credit which are promises to make loans to a specified customer up to a specified limit.letters of credit which constitute promises to make a payment conditional upon the presentation of certain documents specified by a contract.loan commitments providing a guarantee that funds will be made available but no financial asset exists until funds are actually advanced.one-off guarantees of payment by third parties since payment is only required if the debtor defaults.

5.09 Contingent assets and contingent liabilities include:

Financial transaction