AI Summary of Article 192 Definitions
This Chapter defines key terms relevant to secured lending and capital market transactions. A lending institution refers to the entity holding the exposure, while a secured lending transaction denotes an exposure collateralised without daily margin requirements. Conversely, a capital market-driven transaction involves collateralised exposure with provisions for daily margin receipt.
Furthermore, the term underlying CIU pertains to a collective investment undertaking in which another CIU has invested. The substitution of risk parameters approach under A-IRB allows for the replacement of risk parameters with those from a direct exposure to the protection provider, ensuring regulatory compatibility.
Article 192 Definitions
For the purposes of this Chapter, the following definitions shall apply:
(1) "lending institution" means the institution which has the exposure in question;
(2) "secured lending transaction" means any transaction giving rise to an exposure secured by collateral which does not include a provision conferring upon the institution the right to receive margin at least daily;
(3) "capital market-driven transaction" means any transaction giving rise to an exposure secured by collateral which includes a provision conferring upon the institution the right to receive margin at least daily;
(4) "underlying CIU" means a CIU in the shares or units of which another CIU has invested;