CA-5.8.131
CBB may, on a case by case basis, allow for recognition of the credit risk mitigating effect of certain other physical collateral if the bank can demonstrate that such collateral meets the following two standards:
(a) Existence of liquid markets for disposal of collateral in an expeditious and economically efficient manner; and
(b) Existence of well established, publicly available market prices for the collateral. CBB will seek to ensure that the amount a bank receives when collateral is realised does not deviate significantly from these market prices.
Amended: April 2011
Apr 08
Apr 08