EBU Single Rulebook Q&A 21 December 2015 2015_2536 Incorporation of contributions over full five year time horizon into determination of five year loss rate

The five year loss rates is calculated as the average of the one year loss rate as defined in column 210 of the same table. The one year loss rate only considers the credit risk adjustments and write offs which occur in the first year of default. Thus, the five year loss rate does not include changes in credit risk adjusments and write offs which occur after the first year of default.