Where repo-style transactions are subject to a master netting agreement, a bank may choose not to recognise the netting effects in calculating capital. Banks that want to recognise the effect of master netting agreements on such transactions for capital purposes must satisfy the criteria provided in paragraph CA-4.3.17 and CA-4.3.18 of the standardised approach. The bank must calculate E* in accordance with paragraphs CA-4.3.20 and 4.3.21 or CA-4.3.22 to 4.3.25 and equate this to EAD. The impact of collateral on these transactions may not be reflected through an adjustment to LGD.