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===Contagion risk=== | ===Contagion risk=== | ||
It is important to maintain minimum standards which are reflective of genuine credit concerns against the bank so as to limit a | It is important to maintain minimum standards which are reflective of genuine credit concerns against the bank so as to limit a “[[snowball effect|snowball]]” effect: were we to allow a £50mm {{isdaprov|Threshold Amount}}, we would potentially be open to a large number of derivative counterparties simultaneously (and opportunistically) closing out [[out-of-the-money]] derivatives positions, which in itself could have massive liquidity and capital implications. |