214. For the purposes of Article 159 of Regulation (EU) No 575/2013 institutions should not include …

For the purposes of Article 159 of Regulation (EU) No 575/2013 institutions should not include partial write-offs in the calculation of general and specific credit risk adjustments. However, as per Article 166(1) of Regulation (EU) No 575/2013, the calculation of the expected loss amount for the application of Articles 158 and 159 of Regulation (EU) No 575/2013 should be based on the exposure value gross of value adjustments but net of write-offs.

1. Overview

1.1 References

• Article 159 Treatment of expected loss amounts, IRB shortfall and IRB excess
• Article 166 1.
• Article 158 Treatment by exposure type

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/