Guidelines for counterparty credit risk management

This version

BCBS  | 
30 April 2024
Status:  Open [Upload comments]
Topics: Credit risk

The Basel Committee on Banking Supervision has issued a consultation on guidelines for counterparty credit risk management. The proposed guidelines include key practices critical to resolving long-standing industry weaknesses in counterparty credit risk management, including the need to: (i) conduct comprehensive due diligence at both initial onboarding, as well as on an ongoing basis; (ii) develop a comprehensive credit risk mitigation strategy to effectively manage counterparty exposures; (iii) measure, control and limit CCR using a wide variety of complementary metrics; and (iv) build a strong CCR governance framework. The guidelines will replace the Committee's Sound practices for banks' interactions with highly leveraged institutions published in January 1999.

The Committee welcomes comments from a broad range of interested stakeholders on the proposed guidelines, which should be submitted here by 28 August 2024. All submissions will be published on the BIS website unless a respondent specifically requests confidential treatment.