Article 26

For the purpose of calculating K‐TCD, the own funds requirement shall be determined by the following formula: Own funds requirement = α • EV • RF • CVA where: α = 1,2; EV = the exposure value calculated in accordance with Article 27; RF = the risk factor defined per counterparty type as set out in Table 2; and CVA = the credit valuation adjustment calculated in accordance with Article 32. Table 2 Counterparty type | Risk factor Central governments, central banks and public sector entities | 1,6 % Credit institutions and investment firms | 1,6 % Other counterparties | 8 %

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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.