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(b) Partial protection — equal seniority

Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (Text with EEA relevance) · European Union

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.

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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.