Exposure At Default and Identified Staff: Difference between pages

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''Credit risk evaluation - banking.''
''EU''


(EAD).
Term applied to staff whose professional activities have a material impact on the risk profile of the institutions concerned - credit institutions and investment firms.


Exposure At Default is an amount expected to be outstanding following a default by a counterparty, taking account of:
Such staff's remuneration is subject to provisions that seek to ensure that remuneration is consistent with sound and effective risk management and provides an incentive for prudent and sustainable risk taking as set out in Articles 92 to 94 of the [http://ec.europa.eu/internal_market/bank/regcapital/legislation_in_force_en.htm#maincontentSec1 Capital Requirements Directive IV ([[CRD IV]])]. They came into force in 2014 as the Commission's [http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.167.01.0030.01.ENG Delegated Regulation with regard to [[RTS]] on Identified Staff].
*Any credit risk mitigation;
*Drawn balances; and
*Any undrawn amounts of commitments and contingent exposures.


 
The UK introduced similar provisions in 2010 but using the term "[[Code Staff]]". Use of this terminology continue in the UK.
==See also==
*[[Default]]
*[[Expected Loss]]
*[[Loss Given Default]]
*[[Probability of Default]]

Revision as of 12:54, 16 February 2015

EU

Term applied to staff whose professional activities have a material impact on the risk profile of the institutions concerned - credit institutions and investment firms.

Such staff's remuneration is subject to provisions that seek to ensure that remuneration is consistent with sound and effective risk management and provides an incentive for prudent and sustainable risk taking as set out in Articles 92 to 94 of the Capital Requirements Directive IV (CRD IV). They came into force in 2014 as the Commission's Delegated Regulation with regard to RTS on Identified Staff.

The UK introduced similar provisions in 2010 but using the term "Code Staff". Use of this terminology continue in the UK.