supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying the conditions for assessing the materiality of extensions of, and changes to, the use of alternative internal models, and changes to the subset of the modellable risk factors

This regulation sets out technical standards for banks using their own models to calculate capital requirements. It ensures these models are assessed consistently and material changes are properly evaluated.

It affects banks that use internal models for risk assessment and the European Banking Authority, which oversees these models. The goal is to maintain financial stability and a level playing field.