RBI releases draft guidelines for counterpart credit risk assessment

Q.  RBI has released draft guidelines for exposure computation for CCR. What does CCR stand for?
- Published on 24 Jun 16

a. Counterparty credit risk
b. Country credit risk
c. Crucial credit risk
d. Conservative credit risk

ANSWER: Counterparty credit risk
 
A Reserve Bank draft was released on June 23 for computation of exposure to counterparty credit risk from derivatiev transactions and capital requirements for bank exposure to central counterparts or CCPs.
  • Guidelines are framed on the Basel Committee on Banking Supervision according to the central bank
  • Proposed revised guidelines will capture risks arising from OTC and centrally cleared derivative transactions
  • Bimonthly policy statement announced by the Governor was first mentioned in the coming out of draft guidelines along with revision of securitisation framework
  • The final guidelines will be implemented by the coming April against the BCB decision to have it moving from January 2017

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