EBU Single Rulebook Q&A 2 February 2015 2015_1776 Credit Risk Mitigation

Can an institution legally "ring fence" cash it has to mitigate an exposure to a counterparty (using it as financial collateral)? The institution does not wish to notify the counterparty. The CRR is not clear on whether financial collateral used to mitigate an exposure must come from the counterparty or not. An institution wishes to mitigate an exposure they have.