Counterparty Type 2 Row Charge

Overview

This calculator isolates one Type 2 receivable row.^[1] It nets collateral or guarantees from the gross receivable amount and applies the selected Article 202 factor.

Input Terms

• Gross Receivable Amount: The receivable balance before collateral or guarantee offset.
• Collateral / Guarantee Value: The eligible mitigation amount prepared for the row.
• Article 202 Factor: The selected factor for the row, normally 15% for balances due for less than three months or 90% for balances due for more than three months.

Technical Rationale

The calculator applies:

`LGD = max(Gross Amount - Collateral / Guarantees, 0)`

`Capital Charge = LGD x Article 202 Factor`

This keeps the row charge separate from the parent Type 2 aggregation and makes prepared aging and collateral assumptions explicit.

Important Notes

• This is an educational atomistic calculator. Evidence over receivable aging, collateral eligibility, and balance-sheet source remains internal audit scope.
• Use the parent Type 2 calculator to review multiple rows and aggregate current and overdue receivables.
• The result feeds Type 2 aggregation and the counterparty risk aggregation calculator.[[ref: qrt-s2501]]