wrong-way risk
Defined in Article 2, Regulation (EU) 2025/1355 of the ECB
Definitions over time (1)
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03/08/2025 – today applies on 10/11/2026 Article 2, Regulation (EU) 2025/1355 of the ECB Scope: Whole act
For the purposes of this Regulation, the following definitions apply:
‘wrong-way risk’ means risk arising from exposure to a participant or issuer when the collateral provided by that participant or issued by that issuer is highly correlated with its credit risk;