Brussels, 10/02/2011 (Agence Europe) - The European Commission has launched a public consultation exercise that will run until Wednesday 9 March on counterparty risk, in other words, the danger that a bank's counterparty might default. The Commission is seeking the views of interested parties on how much capital banks should be required to hold in a central chamber to compensate for losses from standardised derivatives. The rules that the Commission is planning to introduce in its draft directive on bank capital requirements (the CRD IV Directive) will include risk-weighting and the amount of capital required to be lodged will depend on a bank's exposure to risk. The consultation will also look at credit valuation adjustment, in other words, adjustments by banks in line with the value of an OTC derivative deal to cover counterparty default risks. (M.B./transl.fl)