Article 107 Approaches to credit riskX1

Institutions shall apply either the Standardised Approach provided for in Chapter 2 or, if permitted by the competent authorities in accordance with Article 143, the Internal Ratings Based Approach provided for in Chapter 3 to calculate their risk-weighted exposure amounts for the purposes of points (a) and (f) of Article 92(3).

For trade exposures and for default fund contributions to a central counterparty, institutions shall apply the treatment set out in Chapter 6, Section 9 to calculate their risk-weighted exposure amounts for the purposes of points (a) and (f) of Article 92(3). For all other types of exposures to a central counterparty, institutions shall treat those exposures as follows:

For the purposes of this Regulation, exposures to F1a third-country investment firm, a third-country credit institution and a third-country exchange shall be treated as exposures to an institution only if the third country applies prudential and supervisory requirements to that entity that are at least equivalent to those applied in the F2United Kingdom.

For the purposes of paragraph 3, F3the Treasury may by regulations determine whether a third country applies prudential supervisory and regulatory requirements at least equivalent to those applied in the F4United Kingdom. F5...