154.As with credit risk mitigation techniques more generally, the Central Bank will review the appropriateness of banks’ approaches to the recognition of credit protection. In particular, with regard to securitisations, the Central Bank will review the appropriateness of protection recognised against first loss credit enhancements. On these positions, expected loss is less likely to be a significant element of the risk and is likely to be retained by the protection buyer through the pricing. Therefore, the Central Bank will expect banks’ policies to take account of this in determining their economic capital. If the Central Bank does not consider the approach to protection recognised as adequate, action will be taken. Such action may include increasing the capital requirement against a particular transaction or class of transactions.