Regulatory Alerts2016-06-30
Added · Updated
Supervisory Policy Manual CR-G-12 Credit Risk Transfer Activities
The document provides non-statutory guidance to authorized institutions on establishing sound risk management systems for credit risk transfer activities, including securitization and credit derivatives. It outlines key management elements such as corporate governance, policies, credit assessment, and stress-testing, while defining specific terms like high cost credit protection and special purpose entities. The guidance applies to all authorized institutions, with specific supervisory requirements for locally incorporated entities regarding capital adequacy, liquidity, and disclosure.