Regulation on the identification of the geographical location of the relevant credit exposures for calculating institution-specific countercyclical capital buffer rates

This regulation establishes technical standards for banks to identify where their credit exposures are geographically located. This information is essential for calculating the countercyclical capital buffer, a financial tool that requires banks to hold more capital during periods of high credit growth to prevent systemic financial crises.

This affects financial institutions and regulatory supervisors. It ensures a consistent method for determining which national capital requirements apply to a bank's loans and investments across different EU member states.