Calculate regulatory capital requirements for credit risks

Trigger: The close of a financial reporting period or a material change in the institution's credit portfolio initiates the regulatory capital assessment.

1. Aggregate credit exposure and collateral data across all lending portfolios
2. Determine the applicable regulatory calculation approach
3. Calculate risk parameters including probability of default and loss given default
4. Apply regulatory risk weights to compute Risk-Weighted Assets
5. Calculate the total minimum capital required against the aggregated risk-weighted assets
6. Validate the capital calculations against regulatory framework rules
7. Compile the final credit risk capital figures for regulatory submission

Outcome: The institution's required regulatory capital for credit risk is calculated, validated, and documented for compliance reporting.