contents table
Capital Requirements Regulation (CRR)
Article 5

Article 5 — Definitions specific to capital requirements for credit risk

For the purposes of Part Three, Title II, the following definitions shall apply:

  1. exposure means an asset or off-balance sheet item;
  2. loss means economic loss, including material discount effects, and material direct and indirect costs associated with collecting on the instrument;
  3. expected loss or EL means the ratio of the amount expected to be lost on an exposure from a potential default of a counterparty or dilution over a one-year period to the amount outstanding at default.