In effort to standardize how counterparty risk is calculated, the three federal banking regulators issued a proposed rule to establish a new approach that accounts for the exposure amount of derivative contracts under the regulatory capital rule.
The proposed “standardized approach for counterparty credit risk,” or SA-CCR, would be an alternative to the current exposure methodology for calculating advanced approaches total risk-weighted assets under the capital rule.
Find out more about the potential benefits of the new calculation method.