EBA · 2025_7356 Rejected question

Calculation of risk weights

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
113
Topic
Credit risk
Submitted by
Credit institution
Submitted
2025-02-24
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Question

How should institutions calculate a risk weight amended for credit protection in accordance with Chapter 4?

Background

Article 113(2) stipulates that institutions should calculate risk weighted exposure amounts by multiplying risk weights with exposures, and article 113(3) specifies that risk weights may be amended to account for the effect of credit risk mitigation in accordance with chapter 4. However, in certain cases chapter 4 does not specify how risk weights should be amended, but rather how risk-weighted exposure amounts should be amended. In these cases it is unclear how risk weights should be calculated and applied in accordance with article 113.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2025_7356

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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