%0 Journal Article
%T Up-to-Date Hedge Accounting for TPRM Based on Cost/Benefit Assessment When Aligning with FED Interagency Letter SR 23-4 to Be Shared for FinTech Supporting Sound Practices within CRE 22 Effective as of: 01 Jan 2023
%A John Peter Koeplin
%A Pascal L¨¦l¨¦
%J Journal of Financial Risk Management
%P 207-259
%@ 2167-9541
%D 2024
%I Scientific Research Publishing
%R 10.4236/jfrm.2024.131011
%X Hedge accounting reporting is no longer
optional since January 1, 2023, with the entry into force of the Revised Basel
Framework. This paper contributes to the practice of TPRM on corporate
accounting interaction FinTech highlighted by the FED Interagency Letter SR
23-4, to cross the critical milestone of Template CR3 prescribed since 2019.
This is the standardized approach articulating the OPE25-Calculation of RWA
for operational risk with CRE22-Calculation of RWA for credit risk for recognition
of credit risk mitigation based on monitoring and control of earnings resulting
in deposit accounts of Template CR3: Mandatory Credit Risk
Mitigation Techniques for all banks and financial services. The CR3 template
covers all CRM techniques recognized in the applicable accounting framework. It
is part of corporate accounting (management accounting or cost accounting). ˇ°The
mapping process used must be clearly documented. Written business line definitions must be clear and detailed enough to allow THIRD PARTIES to REPLICATE the business line
mapping. The Basel Committee on Banking Supervision (2019) requires that
documentation must, among other things, clearly motivate any exceptions or
overrides and be kept on recordˇ±. The technical issue is therefore the
accounting document of costs and benefits to be attached to the Deposit
Accounts Agreement for TPRM.
%K Hedge Accounting for TPRM
%K Operational Risk Impact on Credit Risk
%K FinTech Supporting Sound Practices
%K CRE 22 Disclosure Requirements
%K Loss Mitigation Accounts
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=132197