CTHIn ForceLegislation
Banking (prudential standard) determination No. 2 of 2025
The simple approachThe simple approach
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The simple approach
- For received collateral to be recognised under the simple approach, it must be pledged for at least the life of the exposure (i.e. maturity mismatches are not permitted) and be marked-to-market and revalued with a minimum frequency of six months. The release of received collateral by the ADI must be conditional upon the repayment of the exposure. Received collateral may be reduced in proportion to the amount of the reduction in the exposure amount.