Posted by Mark Daley on 18 January 2019
Tagged to Credit Risk Mitigation, PRA

The proposal (CP1/19) is to “clarify” some aspects of  Supervisory Statement 17/13, which relates to provisions of the CRR regarding the eligibility of financial collateral when calculating risk-weighted exposure amounts. CRR Article 207(2) disregards collateral provided by a debtor under a non-recourse financing where the debtor’s solvency is materially dependent (has “a material positive correlation”) on the value of those assets. The PRA says some firms have been interpreting this in ways that would appear to have been a little too imaginative for its liking.

The authors

Add to home screen

To add this site to your home screen open the browser option menu and tap on Add to home screen.

To add this site to your home screen tap arrow and then plus