10.1

LFIs may account for the presence of CRM when determining the appropriate level of provisions, but only to the extent permitted as per the accompanying standards.
 

10.2

LFIs must have appropriate mechanisms in place to regularly assess the value of Credit Risk mitigation, such as guarantees, credit derivatives and collateral, and adjust the level of provisions where necessary.
 

10.3

The valuation of collateral must reflect the net realisable value, taking into account prevailing market conditions and the time and cost required for realisation.