To help promote consistent interpretation of the Basel Framework, the Basel Committee on Banking Supervision periodically publishes proposals for technical amendments. The set of interpretative issues addressed in this document relate to the circumstance where a bank has a derivative exposure and uses a guarantee or credit default swap (CDS) to hedge the counterparty credit risk (CCR) arising from the derivative counterparty.
Comments received
The Committee wishes to thank those who have taken the time and effort to express their views on the above consultation. The comments received are available in PDF format below.