# Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance), Article 195: On-balance sheet netting

Extent: E+W+S+N.I.

An institution may use on-balance sheet netting of mutual claims between itself and its counterparty as an eligible form of credit risk mitigation.
Without prejudice to Article 196, eligibility is limited to reciprocal cash balances between the institution and the counterparty. Institutions may amend risk-weighted exposure amounts and, as relevant, expected loss amounts only for loans and deposits that they have received themselves and that are subject to an on-balance sheet netting agreement.

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Source: https://www.legislation.gov.uk/eur/2013/575/article/195 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-575/article-195
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.