Version detected , Modified +18 −12§
no amending act named
Explanation, written by a model and checked against the cited text
The only textual change in this provision is that the first sentence of paragraph 1 now reads that PDs shall be determined "in accordance with" the methods for corporate exposures, replacing the earlier wording that they shall be determined "according to" those methods.
Cited: Art. 165, v1 (external, EUR-Lex) · Art. 165, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version 32013R0575 → this version, detected 13 August 2026 02013R0575-20130628
Article 165
Equity exposures subject to the PD/LGD method
1. PDs shall be determined according to in accordance with the methods for corporate exposures.
The following minimum PDs shall apply:
(a) 0,09 % for exchange traded equity exposures where the investment is part of a long-term customer relationship;
(b) 0,09 % for non-exchange traded equity exposures where the returns on the investment are based on regular and periodic cash flows not derived from capital gains;
(c) 0,40 % for exchange traded equity exposures including other short positions as set out in Article 155(2);
(d) 1,25 % for all other equity exposures including other short positions as set out in Article 155(2).
2. Private equity exposures in sufficiently diversified portfolios may be assigned an LGD of 65 %. All other such exposures shall be assigned an LGD of 90 %.
3. M assigned to all exposures shall be five years.