Status: You are viewing the version of the handbook as on 2012-12-13.

credit enhancement

    48(in accordance with Article 4(43) of the Banking Consolidation Directive (Definitions)) a contractual arrangement whereby the credit quality of a position in a securitisation (within the meaning of paragraph (2) of the definition of securitisation) is improved in relation to what it would have been if the enhancement had not been provided, including the enhancement provided by more junior tranches in the securitisation and other types of credit protection.