Recital 8

Commission Delegated Regulation (EU) 2021/424 of 17 December 2019 amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the alternative standardised approach for market risk (Text with EEA relevance) · European Union

(8) The BCBS Minimum capital requirements for market risk propose a ‘base currency’ approach as an additional approach to determine the own funds requirements for delta and curvature risks of foreign exchange risk factors. In line with that approach, institutions should, when calculating the own funds requirements for market risk, be able to choose another currency than their reporting currency to express the foreign exchange risk factors. That approach should be allowed where the institution meets a number of conditions related to the institution’s management of foreign exchange risk and should be subject to supervisory approval.

← Recital 7 · All articles · Recital 9 →

Source: EUR-Lex (Cellar) · retrieved 2026-10-18 · Text as adopted (Official Journal); later amendments are not incorporated in this text.