Corporate deposits used as CVA mitigant

Banks looking to mitigate the new Basel III CVA capital charge – and using corporate deposits as collateral on derivatives is one option, says banker


Banks are looking at ways of mitigating the credit valuation adjustment (CVA) charge under Basel III - and one method is to use corporate deposits as collateral on derivatives trades, say market participants.

The new CVA charge will come into force from January 2013, but many banks are pricing it into derivatives trades now. However, the charge is particularly onerous for longer-dated trades with counterparties such as corporates, which historically have not posted collateral.

With corporates

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here