Institutions shall adjust the risk-weighted exposure amounts for non-defaulted exposures to an SME (RWEA), which are calculated in accordance with Chapter 2 or 3 of Title II of Part Three F3of this Regulation and Articles 132a to 132c of Chapter 3 of the Standardised Approach and Internal Ratings Based Approach to Credit Risk (CRR) Part of the PRA Rulebook, as applicable, in accordance with the following formula:

${\mathrm{RWEA}}^{*}=\mathrm{RWEA}\times \frac{\min \left\{E^{*}\mathrm{;\; EUR}2500000\right\}\times \mathrm{0,7619}+\max \left\{E^{*}-\mathrm{EUR}2500000\mathrm{;\; 0}\right\}\times \mathrm{0,85}}{E^{*}}$

where:

RWEA*

the RWEA adjusted by an SME supporting factor; and

E*

the total amount owed to the institution, its subsidiaries, its parent undertakings and other subsidiaries of those parent undertakings, including any exposure in default, but excluding claims or contingent claims secured on residential property collateral, by the SME or the group of connected clients of the SME.