Article 201 Eligibility of protection providers under all approaches

Institutions may use the following parties as eligible providers of unfunded credit protection:

central governments and central banks;

regional governments or local authorities;

multilateral development banks;

international organisations to which a 0 % risk weight is assigned in accordance with in Article 118;

public sector entities, claims on which are treated in accordance with Article 116;

institutions, and financial institutions for which exposures to the financial institution are treated as exposures to institutions in accordance with Article 119(5);

regulated financial sector entities;

where the credit protection is not provided to a securitisation exposure, other undertakings, that have a credit assessment by a nominated ECAI, including parent undertakings, subsidiaries or affiliated entities of the obligor where a direct exposure to those parent undertakings, subsidiaries or affiliated entities has a lower risk weight than the exposure to the obligor;

qualifying central counterparties.

For the purposes of the first subparagraph, point (fa), of this Article, ‘regulated financial sector entity’ means a financial sector entity meeting the condition set out in Article 142(1), point (4)(b).

In addition to the protection providers listed in paragraph 1, corporate entities that are internally rated by the institution in accordance with Chapter 3, Section 6, shall be eligible providers of unfunded credit protection where the institution uses the IRB approach for exposures to those corporate entities.