Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Market risk
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Disclose name of institution / entity:
Type of submitter:
Credit institution
Subject Matter:
Discount factor for the exposure under the standardised CVA risk capital requirement

Is it still correct for non-IMM banks to discount the exposure according to Article 384 CRR?

Background on the question:

Article 384 paragraph 1 CRR was changed by CRR II with regard to the definition of the EAD. From our point of view, this is primarily an editorial adjustment. In the recently published consolidated text of CRR II, the following sentence on the application of the discount factor was also deleted (

The deletion of the sentence following the EAD definition in the consolidated text is inappropriate. The discount factor continues to apply in accordance with the Basel framework for credit valuation adjustment risk (CVA). At this point, CRR II does not change anything.

Date of submission:
Published as Rejected Q&A
Rationale for rejection:

This question has been rejected because the objective of the Q&A tool is not to answer questions that put into doubt the correctness of the legal framework, seek a modification of the legal framework or would require such a modification in order to address the question.

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Rejected question