Risk weight for International Finance Facility for Immunization (IFFIm)

This version

BCBS  | 
24 October 2006
Status:  Consolidated
Topics: Credit risk


This standard has been integrated into the consolidated Basel Framework.

The Basel Committee on Banking Supervision has agreed that supervisors may allow banks to apply a 0% risk weight to claims on the International Finance Facility for Immunization (IFFIm) in a similar way as a multilateral development bank (MDB) in accordance with paragraph 59 of the document International Convergence of Capital Measurement and Capital Standards, A Revised Framework, June 2004 (Basel II Framework).

The Committee is of the view that claims on the IFFIm could be assigned a 0% risk weight given that, among fulfilling other criteria set out in paragraph 59 of the Basel II Framework,

  • The World Bank acts as its Treasury Manager responsible for managing IFFIm's funding, liquidity and other treasury operations;
  • IFFIm has received a AAA rating from Moody's Investors Service, Standard & Poor's and Fitch Ratings; and
  • Its donor structure is comprised of sovereigns that have made legally binding grant commitments to IFFIm. The majority of the donors have long-term issuer credit assessments of AAA.