Regulation on liquidity horizons for the alternative internal model approach, as referred to in Article 325bd(7)

This regulation sets technical standards for how banks calculate liquidity horizons when using internal models to measure market risk. It ensures that banks accurately account for the time needed to liquidate assets during periods of financial stress, promoting greater stability in the banking sector.

This primarily affects large credit institutions and investment firms that use the alternative internal model approach for regulatory reporting and capital requirements.