This section presents the method of calculating the UL capital requirements for equity exposures. The first sub-section discusses (a) the market-based approach (which is further sub- divided into a simple risk weight method and an internal models method), and (b) the PD/LGD approach. The risk components are provided in the second sub-section. The method of calculating expected losses, and for determining the difference between that measure and provisions is described in section CA-5.7.