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  • PIB 4.14.51 PIB 4.14.51

    An Authorised Firm which is the Originator or Sponsor of a securitisation involving revolving Exposures as well as an Early Amortisation provision, must calculate an additional RWA amount in accordance with PIB Rule 4.14.57 to address the possibility that its Credit Risk Exposure levels may increase following the operation of the Early Amortisation provision.

    Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 4.14.51 Guidance

      1. This section sets out the methodology for calculation of the Credit RWA amount by an Originator, when it sells revolving Exposures into a securitisation that contains an Early Amortisation provision.
      2. Early Amortisation of the Securities describes the process whereby the repayment of the investors' interest is brought forward upon the occurrence of specified events. Events that are economic in nature by reference to the financial performance of the transferred assets are known as economic triggers.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]