Standard parameters

(1) Without prejudice to section 89(1), first sentence, section 96(1), section 97(3), and sections 100 and 109(2), the following applies with regard to the standard parameters to be used: 1. until 31 December 2017, in calculating the sub-modules for concentration risk and spread risk under the standard formula, the same standard parameters are used for exposures to the member or contracting states, or their central banks, denominated in the national currency of another member or contracting state and refinanced in that currency, as for exposures denominated in the undertaking's own national currency and refinanced in that currency; 2. in 2018, the standard parameters used in calculating the sub-modules for concentration risk and spread risk under the standard formula are reduced by 80 percent for exposures to the member or contracting states, or their central banks, denominated in the national currency of another member or contracting state and refinanced in that currency; 3. in 2019, the standard parameters used in calculating the sub-modules for concentration risk and spread risk under the standard formula are reduced by 50 percent for exposures to the member or contracting states, or their central banks, denominated in the national currency of another member or contracting state and refinanced in that currency; 4. from 1 January 2020, the standard parameters used in calculating the sub-modules for concentration risk and spread risk under the standard formula are no longer reduced for exposures to the member or contracting states, or their central banks, denominated in the national currency of another member or contracting state and refinanced in that currency.
(2) For shares that the undertaking acquired on or before 1 January 2016, without prejudice to section 89(1), first sentence, section 97(3), section 98(1), and sections 100 and 109(2), the standard parameters to be used in calculating the equity risk sub-module under the standard formula are calculated as weighted averages of 1. the standard parameter to be used in calculating the equity risk sub-module under Article 304 of Directive 2009/138/EC, and 2. the standard parameter to be used in calculating the equity risk sub-module under section 106. The weight of the parameter named in the first sentence, point 2, increases at least linearly at the end of each year, from 0 percent during the year beginning on 1 January 2016 to 100 percent on 1 January 2023.