PIB 4.15.12

Past version: effective from 09/12/2012 - 31/03/2021
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For the purposes of this section, an Authorised Firm may reduce the value of its Exposures, at its discretion, by any one or more of the following:

(a) the amount of any specific provision made, where the provision relates to the risk of a credit loss occurring on that Exposure and is not held as part of a general provision or reserve against its Credit Risks;
(b) Netting its claims on and liabilities to a Counterparty, provided that the conditions in PIB section 4.13 of Credit Risk mitigation are met;
(c) the amount of Collateral held against its Exposures, where that Collateral is of a type listed based on the FCSA and FCCA approaches and meeting the requirements under PIB section 4.13;
(d) the amount of any eligible guarantees as permitted under PIB section 4.13.9;
(e) the value of a Credit Derivative, where the Credit Derivative is an instrument included in PIB Rule 4.13.11 and the transaction meets the conditions set out in that section; and
(f) the effects of transactions transferring Credit Risks from the Authorised Firm to another party through securitisation, provided that the conditions in PIB section 4.14 are met.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]