as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
what are the specific operational requirements for guarantees and credit derivatives to be recognized for regulatory capital purposes?
user
guarantees and credit derivatives must meet operational requirements such as direct claims on the protection provider, explicit reference to specific exposures, irrevocability, unconditional terms, and coverage of all types of payments expected under the transaction.
assistant