• CM-5.4 CM-5.4 Identity of Counterparty

    • CM-5.4.1

      For the purposes of measuring exposures, the counterparty will generally be: the person from whom the concerned funds are receivable (in the case of fees and commissions etc.); the borrower (customer) in the case of credit facilities; the person guaranteed, the issuer of a security in the case of a security held, or the party with whom a contract was made in the case of a derivative contract.

      Amended: January 2011
      October 2007

    • CM-5.4.2

      Where a third party has provided an eligible guarantee, and subject to the guaranteed bank's policy statement not stating otherwise, the guaranteed bank may be permitted to report the exposure as being to the third party guarantor, rather than the person guaranteed (see Chapter CA-4 for full conditions relating to the recognition of guarantees for regulatory purposes).

      Amended: January 2015
      Amended: January 2011
      October 2007