143. For the purpose of the calculation of economic loss, in accordance with point (2) of Article 5 …

For the purpose of the calculation of economic loss, in accordance with point (2) of Article 5 of Regulation (EU) No 575/2013, institutions should discount all recoveries, costs and additional drawings after the moment of default using an annual discounting rate composed of a primary interbank offered rate applicable at the moment of default increased by an add-on of 5%-points. For this purpose the primary interbank offered rate should be considered the 3-month EURIBOR or a comparable liquid interest rate in the currency of the exposure.

1. Overview

1.1 References

• Article 5 Definitions specific to capital requirements for credit risk

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/