Regulatory Alerts2020-04-16
Regulation on the treatment of counterparty credit risk for banks
The National Bank of Moldova issued Decision No 102 to approve a regulation transposing European Union prudential requirements for credit institutions and investment firms. The regulation establishes methodologies for determining own funds requirements to hedge counterparty credit risk, including the Mark-to-Market, Original Exposure, and Standardized methods. It applies to banks in Moldova and defines specific rules for calculating exposure values, managing wrong-way risk, and treating collateral for derivatives and long settlement transactions.
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