This regulation stipulates that institutions must utilise either the Standardised Approach or the Internal Ratings Based Approach for calculating risk-weighted exposure amounts, as defined under Article 92(4). For trade exposures and contributions to central counterparties, specific guidelines in Chapter 6, Section 9, must be followed.

Furthermore, exposure to third-country financial entities is treated as exposures to institutions only if their regulatory frameworks demonstrate equivalence to those in the Union. The Commission holds the authority to determine such equivalence through implementing acts, with provisions allowing institutions to continue previous treatment until 1 January 2015 under certain conditions.