sectoral capital requirements (SCR)

What is sectoral capital requirements (SCR)?

sectoral capital requirements (SCR) definition and meaning on Finance terms:
The prudential rules for the EU banking system provide for the use of more targeted capital-based tools designed to address vulnerabilities that can appear at sectoral level. They can take the form of stricter requirements for loss given default and higher real estate risk weights, which have been implemented via Articles 124, 164 and 458 CRR. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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