12. For the purposes of Article 181(1) of Regulation (EU) No 575/2013, any reference to the term …

For the purposes of Article 181(1) of Regulation (EU) No 575/2013, any reference to the term ‘collateral’ should be understood as a reference to funded credit protection other than the funded credit protection referred to in Article 166(2) and (3) of that Regulation. This includes, in particular, funded credit protection other than master netting agreements and on-balance sheet netting. Credit risk mitigation effects of master netting agreements and on-balance sheet netting are reflected in the exposure value. Therefore, for the types of exposures where institutions have received permission to use own LGD estimates, institutions may recognise funded credit protection in accordance with Article 181(1) of Regulation (EU) No 575/2013 only where that protection has not already been recognised in the exposure value for the cases specified in Article 166 of that Regulation and in line with paragraph 13.

1. Forbhreathnú

1.1 Tagairtí

• Airteagal 181 1.

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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