# Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance), Article 107: Approaches to credit risk

Extent: E+W+S+N.I.

1 . Institutions shall apply either the Standardised Approach provided for in Chapter 2 or, if permitted by the competent authorities in accordance with Article 143, the Internal Ratings Based Approach provided for in Chapter 3 to calculate their risk-weighted exposure amounts for the purposes of points (a) and (f) of Article 92(3).
2 . For trade exposures and for default fund contributions to a central counterparty, institutions shall apply the treatment set out in Chapter 6, Section 9 to calculate their risk-weighted exposure amounts for the purposes of points (a) and (f) of Article 92(3). For all other types of exposures to a central counterparty, institutions shall treat those exposures as follows:
( a ) as exposures to an institution for other types of exposures to a qualifying CCP;
( b ) as exposures to a corporate for other types of exposures to a non-qualifying CCP.
3 . For the purposes of this Regulation, exposures to a third-country investment firm, a third-country credit institution and a third-country exchange shall be treated as exposures to an institution only if the third country applies prudential and supervisory requirements to that entity that are at least equivalent to those applied in the United Kingdom.
4 . For the purposes of paragraph 3, the Treasury may by regulations determine whether a third country applies prudential supervisory and regulatory requirements at least equivalent to those applied in the United Kingdom. ...

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Source: https://www.legislation.gov.uk/eur/2013/575/article/107 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-575/article-107
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.