Corporate trades should not face CVA charge – poll


Banks should not have to hold capital against the counterparty risk on derivatives trades with corporate customers, according to a poll carried out by Sixty-five per cent of respondents said corporate trades should be exempt from the credit value adjustment (CVA) charge, which is part of Basel III.

European legislators have actually considered introducing an exemption. A carve-out initially appeared in a February version of the fourth Capital Requirements Regulation (CRR IV) and Direct

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