29. Furthermore, the haircut-adjusted market value of the low-risk assets provided as collateral …

Furthermore, the haircut-adjusted market value of the low-risk assets provided as collateral should be maintained over time. This implies that if the value of the underlying assets marked-to-market on a regular basis falls below a certain threshold and no longer complies with the coverage ratio resulting from the application of the haircut, the credit institution should be required to supply additional low-risk assets or replace the relevant part of the payment commitment with cash.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/