2.2.2. Standardised Approach

For the purposes of Article 80, g shall be the risk weight to be assigned to an exposure which is fully protected by unfunded protection (G_(A)), where: g is the risk weight of exposures to the protection provider as specified under Articles 78 to 83; and G_(A) is the value of G* as calculated under point 84 further adjusted for any maturity mismatch as laid down in Part 4. Where the protected amount is less than the exposure value and the protected and unprotected parts are of equal seniority — i.e. the credit institution and the protection provider share losses on a pro-rata basis, proportional regulatory capital relief shall be afforded. For the purposes of Article 80, risk‐weighted exposure amounts shall be calculated in accordance with the following formula: (E-G_(A)) x r + G_(A) x g where: E is the exposure value; G_(A) is the value of G* as calculated under point 84 further adjusted for any maturity mismatch as laid down in Part 4; r is the risk weight of exposures to the obligor as specified under Articles 78 to 83; and g is the risk weight of exposures to the protection provider as specified under Articles 78 to 83. The competent authorities may extend the treatment provided for in Annex VI, Part 1, points 4 and 5 to exposures or parts of exposures guaranteed by the central government or central bank, where the guarantee is denominated in the domestic currency of the borrower and the exposure is funded in that currency.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-09 · Text as adopted (Official Journal); later amendments are not incorporated in this text.