Amendment: Credit risk adjustment calculations (Reg 183/2014)

This regulation updates the technical standards for how financial institutions calculate specific and general credit risk adjustments. It ensures that the methods used to account for potential losses on loans and credits are consistent, transparent, and aligned with current financial reporting standards to maintain market stability.

This affects banks and other financial institutions that must report their credit risk. It changes the specific formulas and specifications used to determine how much capital must be set aside to cover potential credit defaults.