# kaal:claim:1806252-028

**Claim.** A standard objection to indirect regulation is that counterparty credit risk management will not work effectively unless the lending bank has an exclusive relationship with the hedge fund that lets it control the relationship.

**Type.** condition  **Support.** argued

**Holds when.**

- a hedge fund borrows from more than one bank, so no single bank sees its overall risk exposure

**Source quote.**

> CCRM will not work effectively unless the bank has an exclusive relationship with the hedge fund that allows it to control the relationship.

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), V.4 Hedge Fund Regulation via Basel III, page 71

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Failure mode.** non-exclusive-lending-relationship  (family: other)

**Topics.** risk-and-incentives, compliance

**Keywords.** counterparty-credit-risk, indirect-regulation, prime-brokerage, monitoring

**Related claims.**

- contested_by: https://wulfkaal.github.io/claims/2748096-007
- supported_by: https://wulfkaal.github.io/claims/3405660-025

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.