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PIB 4.15.13

An Authorised Firm intending to utilise any of the provisions contained in PIB section 4.13 (Credit Risk mitigation) for the purposes of reducing Exposure values should have in place policies and procedures addressing the following:

(a) risks arising from maturity mismatches between Exposures and any credit protection on those Exposures;
(b) the Concentration Risk arising from the application of Credit Risk mitigation techniques, including indirect Large Exposures — for example to a single Issuer of Securities taken as Collateral; and
(c) the conduct of stress testing on Credit Risk mitigation taken as Collateral.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]