Regulatory Alerts2024-11-28
Circular Letter No. CC/2024/00000050: Supervisory Expectations on Prudential Coverage for Real Estate Acquired via Loan Repayment
Banco de Portugal issued Circular Letter No. CC/2024/00000050 to clarify supervisory expectations regarding minimum prudential coverage levels for real estate acquired through the repayment of own credit. The directive mandates that credit institutions calculate coverage based on the holding period of such properties, ensuring adequate capital buffers are maintained. This guidance applies to credit institutions and specifies reporting and accounting information requirements to enhance financial stability.
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