Regulatory Alerts2022-10-05
Added · Updated
Commission Delegated Regulation (EU) 2023/206 on regulatory technical standards for risk weights and loss given default values for immovable property exposures
The European Commission adopts regulatory technical standards specifying the factors designated authorities must consider when assessing the appropriateness of risk weights and minimum loss given default values for exposures secured by immovable property. Authorities are required to determine loss experience and forward-looking loss expectations based on market characteristics, structural features, and macroeconomic drivers, while accounting for national specificities and existing macroprudential measures. The regulation permits authorities to apply these assessments to specific property segments or territories and allows the use of additional data sources where Union reporting is insufficient. This Regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union.