4.1Where an exposure is denominated in a currency other than sterling, the PRA expects firms to use appropriate and consistent exchange rates to determine compliance with the monetary thresholds set out in the Credit Risk: Standardised Approach (CRR) Part. Accordingly, the PRA expects a firm to use a set of exchange rates that the firm considers to be appropriate to calculate the sterling equivalent value of the total amount owed by an obligor or group of connected clients for the purposes of establishing compliance with the monetary limit of £880,000 for retail exposures referred to in the Credit Risk: Standardised Approach (CRR) Part. The PRA expects a firm's choice of exchange rate to have no obvious bias and to be derived on the basis of a consistent approach over time and across portfolios.

Transactors

4.2 The PRA considers that, where a technical event has occurred, an obligor should not be considered to have failed to repay the balance of a revolving facility, or have drawn down an overdraft facility, for the purpose of the definition of transactor exposure set out in the Glossary Part of the PRA Rulebook.

4.3 For the purpose of paragraph 4.2, a technical event should only be considered to have occurred in the following cases:

(a) where a firm identifies that the delayed or incomplete repayment, or drawdown of an overdraft facility, was a result of a data or system error of the firm, including manual errors of standardised processes;