Arxo Findings Register · Arxo Law

ARXO-2026-0369 · Reported

Basel Framework: CRE36.31 FAQ2

FAQ2 under CRE36.31 quotes a sentence of CRE36.30 that is not in CRE36.30 of the published chapter.

Consequence

Position: Hedge-fund counterparty exposure 100 Reading a: look up the quoted sentence in CRE36.30: not found, no basis for FAQ interpretation Reading b: treat as leftover from earlier wording: FAQ applies to CRE36.31 only Difference: interpretive; whether stressed-volatility PD requirement applies to non-traded-asset borrowers

Proposed correction

Clarify or correct the cited passage so that the rule and its references give one result for the stated case.

Issued by
Basel Committee on Banking Supervision
Act
Basel Framework CRE36 (in force 2023-01-01, published 2022-12-08)
Place
CRE36.31 FAQ2
Record
Discrepancy
Class
Text of the act
Where it arose
The text of the act
Arxo's conclusion
Confirmed
Official text
Unchanged at last check
Last checked
2026-10-31

Evidence

Contradiction within the text. Quotations are verbatim from the official material; translations are ours and marked.

CRE36.31 elaborates on the sentence in CRE36.30 that states
Normative text · Basel Framework CRE36 (in force 2023-01-01, published 2022-12-08) · CRE36.31 FAQ2 · Published 2022-12-08 · retrieved 2026-10-31 · SHA-256 2f6bc5609d88368a3847ccbb835060b75e5632712dae311a78474ba0852e5b8b · copy
PD estimates for borrowers that are highly leveraged or for borrowers whose assets are predominantly traded assets must reflect the performance of the underlying assets based on periods of stressed volatilities.
Normative text · Basel Framework CRE36 (in force 2023-01-01, published 2022-12-08) · CRE36.31 FAQ2 · Published 2022-12-08 · retrieved 2026-10-31 · SHA-256 2f6bc5609d88368a3847ccbb835060b75e5632712dae311a78474ba0852e5b8b · copy

How to check it without Arxo's tools

  1. Open Basel Framework CRE36 (in force 2023-01-01, published 2022-12-08) and find CRE36.31 FAQ2. Compare the text with the quotation above. A copy is kept in this register: 2f6bc5609d88368a-CRE36@2023-01-01~2022-12-08.txt (SHA-256 2f6bc5609d88368a3847ccbb835060b75e5632712dae311a78474ba0852e5b8b, copy of the official file).
  2. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI models read the texts, built the examples and reviewed the findings.

Responsible institutions

Reported to

DateInstitutionChannelReference
2026-10-31Basel Committee on Banking Supervisione-mailhttps://mail.google.com/mail/u/0/#sent/KtbxLthRTjRNkqRtWGvxMWmXhVdckfWkGV

Responses

No response recorded.

History

  1. 2026-10-31Confirmed by Arxo
  2. 2026-10-31Entered in the register
  3. 2026-10-31Reported to Basel Committee on Banking Supervision (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0369, https://arxo.io/findings/ARXO-2026-0369/ (status as of 2026-10-31). Data: ARXO-2026-0369.json.