In addition to the eligible financial collateral recognised in the standardised approach, under the foundation IRB approach some other forms of collateral, known as eligible IRB collateral, are also recognised. These include receivables, specified commercial and residential real estate (CRE/RRE), and other collateral, where they meet the minimum requirements set out in paragraphs CA-5.8.119 to CA-5.8.134.⁴⁰ For eligible financial collateral, the requirements are identical to the operational standards as set out in chapter CA-4.

⁴⁰ The LGD applied to the collateralised portion of such exposures, subject to the limitations set out in paragraphs CA-4.2.1 to CA-4.3.25 of the standardised approach, will be set at 35%. The LGD applied to the remaining portion of this exposure will be set at 45%.