in force 2025-01-01 MODIFIED+76 −462§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
The article's heading was narrowed to refer only to exposures treated under the Standardised Approach, removing the earlier reference to expected loss amounts.
The numbered paragraph structure was removed, with the former paragraph 1 text on the Standardised Approach retained as unnumbered running text, while the former paragraph 2 covering the IRB Approach and the LGD* calculation was deleted entirely.
The cross-reference for applying percentages to off-balance-sheet items was changed from Article 111(1) to Article 111(2).
Cited: Art. 228, v1 · Art. 228, v2
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 228
Calculating risk-weighted exposure amounts and expected loss amounts under the Financial Collateral Comprehensive method
1. for exposures treated under the Standardised Approach
Under the Standardised Approach, institutions shall use E* as calculated under Article 223(5) as the exposure value for the purposes of Article 113. In the case of off-balance sheet off-balance-sheet items listed in Annex I, institutions shall use E* as the value to which the percentages indicated in Article 111(1) 111(2) shall be applied to arrive at the exposure value.
2. Under the IRB Approach, institutions shall use the effective LGD (LGD*) as the LGD for the purposes of Chapter 3. Institutions shall calculate LGD* as follows:LGD*LGD E*E
where:
LGD
the LGD that would apply to the exposure under Chapter 3 where the exposure was not collateralised;
E
the exposure value in accordance with Article 223(3);
E*
the fully adjusted exposure value in accordance with Article 223(5).