Credit Risk Mitigation Under the Current and Revised Rules Guarantees Generally recognizes Recognizes Claims guarantees provided by guarantees from conditionally central governments, eligible guarantors, guaranteed by the GSEs, PSEs in OECD as defined. U.S. government countries, receive a risk multilateral lending weight of 20 institutions, regional percent. Substitution development treatment allows the institutions, U.S. System institution depository to substitute the institutions, foreign risk weight of the banks, and qualifying protection provider securities firms in for the risk weight OECD countries. ordinarily assigned to the exposure. Applies only to eligible guarantees and eligible credit derivatives, and adjusts for maturity mismatches, currency mismatches, and where restructuring is not treated as a credit event.
Credit Risk Mitigation Under the Current and Revised Rules Guarantees Generally recognizes guarantees provided by central governments, GSEs, PSEs in OECD countries, multilateral lending institutions, regional development institutions, U.S. depository institutions, foreign banks, and qualifying securities firms in OECD countries. Recognizes guarantees from eligible guarantors, as defined. Substitution treatment allows the System institution to substitute the risk weight of the protection provider for the risk weight ordinarily assigned to the exposure. Applies only to eligible guarantees and eligible credit derivatives, and adjusts for maturity mismatches, currency mismatches, and where restructuring is not treated as a credit event. Claims conditionally guaranteed by the U.S. government receive a risk weight of 20 percent.
81%20FR%2049720.docx