RTS: Measuring K-factors (Supplement to Regulation 2019/2033)

This regulation provides specific technical methods for calculating 'K-factors,' which are used to determine the capital requirements for investment firms. By standardizing how these factors are measured, the EU aims to ensure that financial firms hold enough capital to cover their specific risks, promoting overall financial stability.

This affects investment firms, banks, and credit institutions operating within the EU. It changes how these entities report their risk profiles and calculate the amount of own funds they must maintain.