# EPE

Expected positive exposure (EPE) means the weighted average over time of expected (non-negative) exposures to a counterparty where the weights are the proportion of the time interval that an individual expected exposure represents. When calculating risk-based capital requirements, the average is taken over a one-year horizon.

## Source

12 CFR § 217.101

## Scoping language

Terms that are set forth in 217.2 and used in this subpart have the definitions assigned thereto in 217.2.