Prudential rules – Questions and answers to Decree No. 123/2007 Coll., stipulating the prudential rules for banks, credit unions and investment firms

In this section answers to questions regarding Decree 123/2007 Coll., stipulating the prudential rules for banks, credit unions and investment firms, which have been asked by regulated entities, will be successively published.

• Set of questions and answers concerning remuneration - updated (pdf, 516 kB)
• Transitional provision for large exposure rules - exposures to institutions (available in Czech only, pdf, 88 kB)
• Large intra-group exposure limits (pdf, 48 kB)
• The IRB approach to credit risk - specialised lending exposures (pdf, 47 kB)
• The revaluation of a given real estate property segment (pdf, 35 kB)
• The IRB approach to credit risk - the calculation of conversion factors (pdf, 35 kB)
• The use of preferential risk weights under the STA approach (pdf, 37 kB)
• Credit risk mitigation techniques under the IRB approach - an independent valuer for the purpose of the review of real estate collateral valuation (pdf, 24 kB)
• The STA approach to credit risk - the excess of the real estate property value over the exposure amount by a substantial margin (pdf, 77 kB)
• Operational risk - the mapping of client payment services and other selected activities into business lines (pdf, 46 kB)
• Cross-currency interest rate swaps and the Mark-to-Market Method (pdf, 17 kB)
• Who can be the counterparty to a netting agreement (pdf, 21 kB)
• Operational risk - determining the relevant indicator in ordinary and extraordinary situations (pdf, 120 kB)
• Collateral in repurchase transactions not meeting the general eligibility criteria (pdf, 60 kB)
• The STA approach to credit risk - the funding condition (pdf, 58 kB)
• Credit protection by receivables - determining the value of a receivable (pdf, 17 kB)
• Well established and publicly available prices in the case of protection by movable assets (pdf, 17 kB)
• Market liquidity in the case of credit protection by movable assets (pdf, 18 kB)
• Credit protection by the cession of, or the pledge on,receivables with ratings (pdf, 19 kB)
• Verifying compliance with the loan terms in the case of credit protection by receivables (pdf, 19 kB)
• The silent cession of, or the silent pledge on, receivables serving as credit protection (pdf, 18 kB)
• The treatment of an exposure protected by insurance provided by Komerční úvěrová pojišťovna EGAP (pdf, 119 kB)
• The STA approach to credit risk -how often and under which conditions may a liable entity change a rating agency (pdf, 55 kB)
• The AIRB approach to credit risk – unfunded protection providers (pdf, 60 kB)
• Acceptable ways of treating Slovak korunas after fixing the exchange rate between the Slovak koruna and the euro (pdf, 17 kB)
• Material dependence between the risk profile of the obligor and cash flows – a housing cooperative, a community of dwelling unit owners (pdf, 25kB)
• Financing a developer collateralised by a real estate or real estates under its ownership (pdf, 21 kB)
• The STA approach to credit risk – the risk weight for the state of Québec (pdf, 17 kB)
• What sub-participation means (pdf, 22 kB)
• The STA approach to credit risk – assigning exposures to the exposures past due class (pdf, 55 kB)
• Using supervisory volatility adjustments in relation to the period before any rating agency was approved (pdf, 58 kB)
• Transitional provisions for the disclosure of information – comparable information on capital requirements (pdf, 22 kB)
• The IRB approach to credit risk – calculating conversion factors for off-balance sheet retail exposures (pdf, 57 kB)
• Using protection in the form of participating securities (pdf, 18 kB)
• Using insurance as a credit risk mitigation technique (pdf, 70 kB)
• Material aspects of rating processes and estimation processes (pdf, 61 kB)
• Using the STA approach as part of the IRB approach to credit risk – credit risk mitigation (pdf, 76 kB)
• The IRB approach to credit risk – dilution risk of purchased receivables (pdf, 60 kB)
• The STA approach to credit risk – assigning mortgages to the retail exposure class (pdf, 19 kB)
• General Insurance Terms and Conditions of EGAP – insurance of refinancing loans (pdf, 17 kB)
• A receivable of a CIU towards a liable entity – the look-through approach (pdf, 58 kB)
• The STA approach to credit risk – categorisation of retail exposures (pdf, 61 kB)
• The STA approach to credit risk – the issue whether allowances established on a portfolio basis can be reflected in the exposure value (pdf, 57 kB)
• Operational risk – the mapping of securities into business lines by building savings banks (pdf, 29 kB)
• Capital instruments in the AFS portfolio – their relationship to capital according to Decree No. 123/2007 Coll. (pdf, 24 kB)