Regulatory term for the possibility of recognizing individual collateral, such as credit insurance, in banks’ risk management. Basel II specifies the relevant options in detail. – See assets, illiquid, retrocession, risk transformation, banking, basic risk-taking rule, hedging. – Cf. ECB Monthly Bulletin of May 2004, p. 75 et seq., Deutsche Bundesbank Monthly Bulletin of December 2004, p. 48 et seq. (Danger: Risk is transferred to actors outside the banking system; banks then exploit the risk scope thus gained to take on new risks, which may ultimately lead to shocks).
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