136. Where institutions open new facilities to replace previously defaulted facilities as part of …

Where institutions open new facilities to replace previously defaulted facilities as part of restructuring or for technical reasons, they should calculate the realised LGDs based on the originally defaulted facilities. For this purpose, institutions should have a sound mechanism to allocate observed costs, recoveries and any additional drawings to original facilities.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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