In addition, a bank entity in the form of a securities financing transaction that defines a repurchase transaction with financial security, a margin loan that meets the definition of a margin loan with financial guarantee, or an over-the-counter derivative contract guaranteed by financial guarantees, may determine to its counterparty, in accordance with Section 37 or Section 132 of the capital rules, a net amount of risk for investments based on risks. A banking entity with multiple repurchase transactions or marginable loans from a qualifying “master-netting” counterparty may deduct the exposures from each transaction under this agreement, minus net amounts minus exposures. In addition, for the calculation of the credit risk component of the counterparty subject to total exposure to credit risk, an advanced credit organization with several repo transactions with the same counterparty subject to a qualified master clearing agreement would be used for the purpose of calculating the credit risk component of the counterparty subject to total credit risk exposure, for the purpose of calculating the counterparty`s credit risk component. Typically, clearing results in a lower start-up-print page 71352, which measures risk-weighted assets and overall leverage exposure, as if a bank organization were charging for over-the-counter derivatives, repurchase transactions and line of credit loans. The final rule amends the definitions of the collateral agreement, the “eligible margin loan,” the qualified master compensation agreement and the “renulate transaction” in the FDIC`s capital and “master-netting qualifying” rules under the FDIC LCR rules, to ensure that the regulatory treatment of capital and liquidity of OTC derivatives, repurchase transactions, margin loans and other secured transactions would not be compromised by the adoption of various special foreign settlement-delivery regimes and ISDA protocol. In particular, the final rule amends these definitions in that a relevant compensation agreement or accompanying agreement may provide for a limited stay or a circumvention of rights when the agreement is subject to or included in certain resolution regimes applicable to financial enterprises, including Title II of the Dodd-Frank Act, the FDI Act or a similar foreign settlement system, which is jointly determined by agencies as essentially Title II of the Dodd-Frank Act or the DI Act. For the calculation of “fully adjusted risk exposure” for exposures that are intended to enter into an eligible principal clearing agreement, including pension transactions and/or securities or commodity lending or credit transactions and/or other capital market-fuelled transactions; An entity calculates volatility corrections calculated using the method to be applied in the BIPRU 5.6.6 R method to BIPRU 5.6.11 R, either using the prudential volatility adjustment approach or the own estimates of volatility adjustments in accordance with BIPRU 5.4.30 to BIPRU 5.4.65 R for the overall financial security method.

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