33. Unfunded credit protection that does not meet the eligibility requirements for guarantors and …

Unfunded credit protection that does not meet the eligibility requirements for guarantors and guarantees specified in Article 183(1) and (3) of Regulation (EU) No 575/2013 and in Section 5.2 of these guidelines should not be recognised using any of the methods specified in paragraph 31. For LGD estimation purposes, the cash flows received from exercising the ineligible unfunded credit protection should be treated as if they had been received without the use of unfunded credit protection. Regardless of this treatment, institutions should collect the information about the source of the cash flows related to ineligible unfunded credit protections and allocate them appropriately. Institutions should regularly monitor the levels of such cash flows as well as the extent to which the relevant types of unfunded credit protection are used. Where necessary, institutions should perform appropriate adjustments in order to avoid any bias in the PD and LGD estimates.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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