1. For the purposes of point (m) of Article 36(1), institutions shall determine the applicable amount of insufficient coverage separately for each non-performing exposure to be deducted from Common Equity Tier 1 items by subtracting the amount determined in point (b) of this paragraph from the amount determined in point (a) of this paragraph, where the amount referred to in point (a) exceeds the amount referred to in point (b):
(a) the sum of:
(i) the unsecured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 2;
(ii) the secured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 3;
(b) the sum of the following items provided they relate to the same non-performing exposure:
(i) specific credit risk adjustments;
(ii) additional value adjustments in accordance with Articles 34 and 105;
(iii) other own funds reductions;
(iv) for institutions calculating risk-weighted exposure a
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