'Restructuring' partly dumped as Basel shifts stance on risk mitigation

The Committee has partially dumped its requirements for the inclusion of ‘restructuring’ as a credit reference event when recognising credit derivatives for risk lay-off related to a bank’s lending book. But under these circumstances, the bank must have complete control over the decision of whether or not there will be a restructuring of the underlying obligations.

“During the CP3 consultative period, the Committee also intends to explore alternative regulatory capital treatments for credit

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