Technical Amendment - Hedging of counterparty credit risk exposures

To help promote consistent interpretation of the Basel Framework, the Basel Committee on Banking Supervision periodically publishes proposals for technical amendments. The set of interpretative issues addressed in this document relate to the circumstance where a bank has a derivative exposure and uses a guarantee or credit default swap (CDS) to hedge the counterparty credit risk (CCR) arising from the derivative counterparty.

Comments on the proposed technical amendments should be submitted here by Friday 31 January 2025. All comments will be published on the BIS website unless a respondent specifically requests confidential treatment.