According to CRR, annex I, item 3(a)(ii) performance bonds are mentioned as an example of warranties that under the heading of 'trade finance off-balance sheet items' classify as medium/low risk.
A Danish performance bond which guarantees satisfactory completion of a project by a contractor normally has an original maturity of 5 years (arbejdsgaranti).
Trade finance is defined in CRR art. 4(1)(80): 'trade finance' means financing, including guarantees, connected to the exchange of goods and services through financial products of fixed short-term maturity, generally of less than one year, without automatic rollover.
Consequently, one could argue that a Danish performance bond does not fulfil the requirement to be treated as a 'trade finance' item.
On the other hand, one could argue that a performance bond has to be assigned to the medium/low risk category, because CRR, annex I, item 3(a)(ii) covers all performance bonds - regardless of their maturity. This holds true for all performance bonds as long as they do not have the character of a credit substitute. Trade finance items should 'generally', but not exclusively have a maturity of less than one year.