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Sub-Section 3

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

PDs shall be determined according to the methods for corporate exposures. The following minimum PDs shall apply: 0,09 % for exchange traded equity exposures where the investment is part of a long-term customer relationship; 0,09 % for non-exchange traded equity exposures where the returns on the investment are based on regular and periodic cash flows not derived from capital gains; 0,40 % for exchange traded equity exposures including other short positions as set out in Article 155(2); 1,25 % for all other equity exposures including other short positions as set out in Article 155(2). Private equity exposures in sufficiently diversified portfolios may be assigned an LGD of 65 %. All other such exposures shall be assigned an LGD of 90 %. M assigned to all exposures shall be five years.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.