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Article 291 › 1

CRR
REGULATION (EU) No 575/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance) · European Union

For the purposes of this Article: (a) ‧General Wrong-Way risk‧ arises when the likelihood of default by counterparties is positively correlated with general market risk factors; (b) ‧Specific Wrong-Way risk‧ arises when future exposure to a specific counterparty is positively correlated with the counterparty's PD due to the nature of the transactions with the counterparty. An institution shall be considered to be exposed to Specific Wrong-Way risk if the future exposure to a specific counterparty is expected to be high when the counterparty's probability of a default is also high.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04