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  1. Point in time
    2014-06-12

MIPRU 4.2C Credit risk mitigation

Application

MIPRU 4.2C.1RRP

This section applies to a firm to whichMIPRU 4.2.23 R applieswherethat firm wishes to apply credit risk mitigation to the calculation of its risk weighted exposure amounts under MIPRU 4.2A.

Purpose

MIPRU 4.2C.2GRP

The purpose of MIPRU 4.2C is to set out which provisions of BIPRU 5 a firm should comply with in the recognition of credit risk mitigation in the calculation of risk weighted exposure amounts for the purposes of the calculation of the credit risk capital requirement under MIPRU 4.2.23 R.

General

MIPRU 4.2C.3R

A firm that wishes to recognise credit risk mitigation in the calculation of risk weighted exposure amounts, must comply with BIPRU 5 in the same way that that section applies to a BIPRU firm, except to the extent that a provision of BIPRU 5 is modified or excluded in the table in MIPRU 4.2C.4 R.

MIPRU 4.2C.4R

This table belongs to MIPRU 4.2C.3 R

BIPRU provision

Adjustment

All provisions of BIPRU 5

A reference to a provision of BIPRU 3, BIPRU 5 or BIPRU 9 must be read in conjunction with MIPRU 4.2A.8 R, MIPRU 4.2B.4 R and MIPRU 4.2C.4 R

BIPRU 5.1

This section does not apply

BIPRU 5.3.2 R

The words "without prejudice to BIPRU 5.6.1 R" do not apply

BIPRU 5.4.1 R

This rule does not apply

BIPRU 5.4.8 R

This rule does not apply

BIPRU 5.4.16 R

This rule does not apply

BIPRU 5.4.18 R

The second sentence of this rule does not apply

The words "BIPRU 5.4.19 R to BIPRU 5.4.21 R" are replaced by the words "BIPRU 5.4.21 R"

BIPRU 5.4.19 R

This rule does not apply

BIPRU 5.4.20 R

This rule does not apply

BIPRU 5.4.22 R

The reference to BIPRU 5.4.20 R does not apply

BIPRU 5.4.23 R to BIPRU 5.4.66 R

These provisions do not apply. A firm must only use the financial collateral simple method

BIPRU 5.6

This section does not apply

BIPRU 5.7.4 R

This rule does not apply

BIPRU 5.7.12 R

This rule does not apply

BIPRU 5.7.19 R

This rule does not apply

BIPRU 5.7.23 R

The words "BIPRU 3.2.20 R to BIPRU 3.2.26 R" are replaced by the words "MIPRU 4.2A.8 R to MIPRU 4.2A.11 R and MIPRU 4.2A.14 G"

BIPRU 5.7.23 R (3)

The first clause of this rule is amended to read as follows: "E is the exposure value according to MIPRU 4.2A.5A G and BIPRU 3.2.3 R;"

The second clause of this rule does not apply

BIPRU 5.7.24 R

The words "BIPRU 3.2.20 R to BIPRU 3.2.26 R" are replaced by the words "MIPRU 4.2A.8 R to MIPRU 4.2A.11 R and MIPRU 4.2A.14 G".

BIPRU 5.7.24 R (1)

This rule is amended to read as follows: "E is the exposure value according to MIPRU 4.2A.5A G and BIPRU 3.2.3 R."

BIPRU 5.7.27 R

The references to BIPRU 4.10 and the IRB approach do not apply

BIPRU 5.8.8 R and BIPRU 5.8.9 R

These rules do not apply