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Qualifying Infrastructure Equity Risk

Calculate the Qualifying Infrastructure Equity Risk Capital Requirement instantly.

€
%
%

Qualifying Infrastructure Project Equity Exposure

€8 000 000

× (

Infrastructure Equity Base Shock Factor

30.0%

+

Infrastructure Equity SA Multiplier

0.77

×

Symmetric Adjustment

5.0%

) =

Qualifying Infrastructure Equity Risk Capital Requirement

€2 706 891

Qualifying Infrastructure Equity Risk Shock Impact

Shock charge
Retained value
ModuleShockPre-shockPost-shockCharge
Qualifying Infrastructure Project Equity Exposure-33.8%€8 000 000€5 293 109€2 706 891
1Step 1

Applied Infrastructure Equity Shock

Applied Infrastructure Equity Shock=min⁡(100,max⁡(0,Infrastructure Equity Base Shock Factor+Infrastructure Equity SA Multiplier×Symmetric Adjustment))\textit{Applied Infrastructure Equity Shock} = \min(100, \max(0, \textit{Infrastructure Equity Base Shock Factor} + \textit{Infrastructure Equity SA Multiplier} \times \textit{Symmetric Adjustment}))
2Step 2

Infrastructure Equity Shock Factor

Infrastructure Equity Shock Factor=min⁡(1,max⁡(0,Applied Infrastructure Equity Shock))\textit{Infrastructure Equity Shock Factor} = \min(1, \max(0, \textit{Applied Infrastructure Equity Shock}))
3Step 3

Qualifying Infrastructure Equity Risk Capital Requirement

Qualifying Infrastructure Equity Risk Capital Requirement=Qualifying Infrastructure Project Equity Exposure×Infrastructure Equity Shock Factor\textit{Qualifying Infrastructure Equity Risk Capital Requirement} = \textit{Qualifying Infrastructure Project Equity Exposure} \times \textit{Infrastructure Equity Shock Factor}

Understand the Qualifying Infrastructure Equity Risk

Overview

Article 169 defines the qualifying infrastructure equity shock branch within equity risk.[1]

Qualifying infrastructure project equity is separated because Article 168 links preferential treatment to the project-entity criteria rather than to the ordinary Type 2 equity category. Article 169 applies a shock equal to 30% plus 77% of the symmetric adjustment to qualifying infrastructure equities other than strategic or long-term equity investments.[2][1] Under Article 87, Basic Own Funds are defined as the excess of assets over liabilities both valued on a market-consistent basis, where qualifying subordinated liabilities are excluded from the liability figure.[3] A full undertaking-specific BOF impact may therefore require recalculating technical provisions under Article 83.

Article 83 mandates that the following assumptions apply in any standard formula scenario-based module or sub-module calculation: * The risk margin does not change. * Deferred tax assets and liabilities do not change. * Future discretionary benefits do not change. * Management actions during the scenario are not reflected.

This page does not model any liability-side response, Article 84 look-through, infrastructure qualification, strategic-equity evidence, long-term-equity eligibility, or equity-risk aggregation. The input exposure should already be the qualifying infrastructure equity amount that remains after strategic and long-term equity branches have been carved out.

Input Terms

  • Qualifying Infrastructure Project Equity Exposure: The value of qualifying infrastructure equity exposure that should receive the standard infrastructure project equity shock.[2][1]
  • Infrastructure Equity Base Shock Factor: The Article 169 base shock for qualifying infrastructure project equity exposure, defaulting to 30%.[1]
  • Infrastructure Equity SA Multiplier: The Article 169 multiplier applied to the symmetric adjustment for qualifying infrastructure project equity exposure, defaulting to 0.77.[1]
  • Symmetric Adjustment: The Article 172 symmetric adjustment, expressed in percentage points and supported by official EIOPA technical information for the reporting date.[4]

Technical Rationale

The Article 169 qualifying infrastructure project branch keeps infrastructure qualification and symmetric-adjustment scaling visible because both affect whether the preferential calibration is available. The regulatory defaults produce a lower base shock than ordinary Type 2 equity, but only for exposure that remains after strategic and long-term equity branches have been excluded.

Important Notes

  • Qualification not modelled here: This page assumes the exposure has already been confirmed as qualifying infrastructure project equity.
  • Symmetric adjustment source: The Article 172 value should be supported by official EIOPA technical information for the reporting date.
  • Preferential branches excluded: Strategic and long-term equity infrastructure exposures use the 22% preferential branch instead of this standard infrastructure shock.
  • Branch boundary: This page does not model any liability-side response and is not a complete equity SCR calculation by itself.
  • Reporting: The displayed result is intended to support the corresponding equity-risk component for the S.25.01.01 standard-formula reporting view.[5]

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 169 (Standard equity risk sub-module) - EIOPA
  2. Delegated Regulation (EU) 2015/35 - Art. 168 (Equity risk: general provisions) - EIOPA
  3. Directive 2009/138/EC - Art. 87 (Own funds) - EIOPA
  4. Delegated Regulation (EU) 2015/35 - Art. 172 (Symmetric adjustment of the equity capital charge) - EIOPA
  5. Commission Implementing Regulation (EU) 2023/894 - QRT S.25.01.01 (SCR standard formula) - EUR-Lex

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.