BANK 4.5.1 Introduction
A banking business firm is able to obtain capital relief by using CRM techniques. CRM techniques must be viewed as complementary to, rather than a replacement for, thorough credit risk assessment.
Note Under rule 4.4.2, if a claim or asset to which a risk-weight must be applied is secured by eligible financial collateral or guarantee (or there is a mortgage indemnity insurance, or a credit derivative instrument or netting agreement) this Part on credit risk mitigation may be used to reduce the credit risk capital requirement of the firm.
|Derived from QFCRA RM/2014-2 (as from 1st January 2015).|