1.1 The purpose of this SS is to provide clarification to firms of the Prudential Regulation Authority’s (PRA) expectations in respect of the recognition of credit risk mitigation in the calculation of certain risk-weighted exposure amounts.

1.2 This Supervisory Statement (SS) applies to PRA-authorised banks, building societies, PRA-designated investment firms, and PRA-approved or PRA-designated financial or mixed financial holding companies (collectively ‘firms’).