Regulation on prudential requirements for credit institutions and investment firms, with regard to regulatory technical standards for specifying the calculation of specific and general credit risk adjustments

This regulation provides detailed technical standards for how credit institutions and investment firms calculate credit risk adjustments. It ensures that banks set aside sufficient capital to cover potential losses from loans, promoting financial stability across the European Union.

This affects banks and investment firms, requiring them to follow standardized methods for reporting and calculating specific and general credit risk to ensure consistent supervision.