View source for Template:CRD Article 193

====Principles for recognising the effect of credit risk mitigation techniques====
1. No exposure in respect of which an institution obtains [[credit risk mitigation]] shall produce a higher risk-weighted exposure amount or expected loss amount than an otherwise identical exposure in respect of which an institution has no credit risk mitigation. <br>
2. Where the [[risk-weighted]] exposure amount already takes account of credit protection under Chapter 2 or Chapter 3, as applicable, institutions shall not take into account that [[credit protection]] in the calculations under this Chapter. <br>
3. Where the provisions in Sections 2 and 3 are met, institutions may amend the calculation of risk-weighted exposure amounts under the Standardised Approach and the calculation of risk-weighted exposure amounts and expected loss amounts under the IRB Approach in accordance with the provisions of Sections 4, 5 and 6. <br>
4. Institutions shall treat cash, securities or commodities purchased, borrowed or received under a [[repurchase transaction]] or [[securities or commodities lending or borrowing transaction]] as [[collateral]]. <br>
5. Where an institution calculating risk-weighted exposure amounts under the Standardised Approach has more than one form of [[credit risk mitigation]] covering a single exposure it shall do both of the following:
:(a) subdivide the exposure into parts covered by each type of [[credit risk mitigation]] tool;
:(b) calculate the risk-weighted exposure amount for each part obtained in point (a) separately in accordance with the provisions of Chapter 2 and this Chapter. <br>
6. When an institution calculating [[risk-weighted exposure]] amounts under the Standardised Approach covers a single exposure with credit protection provided by a single protection provider and that protection has differing maturities, it shall do both of the following:
:(a) subdivide the exposure into parts covered by each [[credit risk mitigation]] tool;
:(b) calculate the risk-weighted exposure amount for each part obtained in point (a) separately in accordance with the provisions of Chapter 2 and this Chapter.