Regulatory AlertsRecommendation J regarding the rules for the collection and processing of real estate data by banks
The Polish Financial Supervision Authority (KNF) issued Recommendation J to establish standards for banks to collect and process real estate data, aiming to mitigate systemic risks associated with mortgage-backed exposures. The document mandates that banks, particularly those with significant mortgage portfolios, maintain reliable internal and external databases to accurately assess and monitor collateral values. It further requires the use of validated statistical models for risk assessment and encourages active participation in interbank data exchange to enhance market transparency and liquidity.
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