211. For the purpose of this chapter the difference between, on the one hand, general and specific credit risk adjustments, additional value adjustments and other own funds reductions relating to these exposures and, on the other hand, expected loss amount in accordance with Article 159 of Regulation (EU) No 575/2013 should be considered IRB shortfall, if negative, and IRB excess, if positive.

212. Where the calculation for the overall non-defaulted portfolio referred to in Article 159 of Regulation (EU) No 575/2013 results in an IRB excess, institutions may use this IRB excess to cover for any IRB shortfall from the calculation carried out in accordance with that Article for the overall defaulted portfolio.

213. For the purposes of adding any IRB excess to Tier 2 in accordance with Article 62(d) of Regulation (EU) No 575/2013, where the calculation referred to in Article 159 of Regulation (EU) No 575/2013 results in an IRB excess for both the defaulted and the non-defaulted portfolio, the sum of those two IRB excesses should be considered and added to Tier 2 in accordance with the limit referred to in Article 62(d) of Regulation (EU) No 575/2013. .