Technical Amendment - Hedging of counterparty credit risk exposures

This document sets out a technical amendment to the Basel Framework. The amendment relates to the circumstance where a bank uses a guarantee or credit derivative to hedge the counterparty credit risk (CCR) of a derivative exposure subject to the standardised approach to counterparty credit risk or the internal models method.

The technical amendment was published for consultation in November 2024 and has been finalised with some adjustments to reflect stakeholder feedback. Basel Committee members have agreed to implement this technical amendment as soon as practical and within three years at the latest.

Technical amendments are defined as changes in standards that are not substantial in nature but that cannot be unambiguously resolved based on the current text.