Which of the following is true regarding regulatory rules for standby letters of credit (SLCs) issued by banks?

A. SLCs are ignored when assessing the risk exposure to a single credit customer B. It cannot be listed as an off-balance sheet item C. They must apply the same credit standards for approving SLCs as for direct loans D. They must list the SLC as a liability on their balance sheet E. Banks are not required to hold capital toward backing the SLC