Partial Use

Partial use allows the continued treatment of specific exposure classes, exposure types or parts of entities under the standardised approach for credit risk, while the remaining exposures are covered in accordance with the rules of the IRB Approach (see the IRB Approach for Calculation of Credit Risk). A distinction is made between temporary partial use and permanent partial use (defined in Article 150 CRR), although the former may only be applied for a transitional period. Any Partial Use required approval by the competent supervisory authority. Analogously, partial use is also possible in relation to the different approaches for calculating of minimum own funds requirements for operational risk.