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# K_reduced

<table><tr><th>Description</th><td>Interim measure for the capital requirement for CVA risk under the reduced version of the BA-CVA</td></tr><tr><th>Reference</th><td><a href="https://www.bis.org/basel_framework/chapter/MAR/50.htm?inforce=20230101&published=20200708#paragraph_MAR_50_20230101_50_14">\[MAR50.14]</a></td></tr><tr><th>Notation</th><td>$K_{reduced}$</td></tr><tr><th>Formula</th><td>$K_{reduced}= \sqrt{\left( \rho \cdot \sum_{c} SCVA_c \right)^2 + (1-\rho^2)\cdot \sum_c SCVA_c^2}$</td></tr></table>

## See also

* [SCVA](./scva)