X1PART THREECAPITAL REQUIREMENTS

TITLE IICAPITAL REQUIREMENTS FOR CREDIT RISK

CHAPTER 4Credit risk mitigation

Section 4Calculating the effects of credit risk mitigation

Sub-Section 1Funded credit protection

Article 219On-balance sheet netting

Loans to and deposits with the lending institution subject to on-balance sheet netting are to be treated by that institution as cash collateral for the purpose of calculating the effect of funded credit protection for those loans and deposits of the lending institution subject to on-balance sheet netting which are denominated in the same currency.