Charles Morris

Intermediated guarantees as unfunded credit protection

This In Practice article explores how and why banks may rely on guarantees granted to agents and other intermediaries for regulatory capital purposes, even though such arrangements might seem to be at odds with the direct protection requirement under the Capital Requirements Regulations.The article is loosely based on Chapter 8 of Credit Risk Mitigation and Synthetic Securitization: Law and Regulation, by Timothy Cleary and Charles H R Morris (Oxford, 2025).¹