Article 384 Standardised method
1. An institution which does not calculate the own funds requirements for CVA risk for its counterparties in accordance with Article 383 shall calculate a portfolio own funds requirements for CVA risk for each counterparty in accordance with the following formula, taking into account CVA hedges that are eligible in accordance with Article 386:
where:
h = the one-year risk horizon (in units of a year); h = 1;
wi = the weight applicable to counterparty "i".
Counterparty "i" shall be mapped to one of the six weights wi based on an external credit assessment by a nominated ECAI, as set out in Table 1. For a counterparty for which a credit assessment by a nominated ECAI is not available:
(a) an institution using the approach in Title II, Chapter 3 shall map the internal rating of the counterparty to one of the external credit assessment;
(b) an institution using the approach in Title II, Chapter 2 shall assign wi=1.0 % to this counterparty. However, if an in
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