Regulatory Alerts2026-07-27
Added · Updated
Commission Delegated Regulation (EU) 2023/206 on risk weights and LGD values for immovable property exposures
Designated authorities must determine loss experience and forward-looking loss expectations to assess the appropriateness of risk weights for exposures secured by immovable property, considering factors such as market cycles, structural characteristics, and macroeconomic drivers. Authorities must also evaluate the appropriateness of minimum loss given default input floor values for retail exposures by analyzing demand and supply conditions, recovery procedures, and existing macroprudential measures like loan-to-value limits. These assessments may be conducted for specific property segments or parts of a Member State's territory, utilizing alternative data sources if standard reporting is insufficiently granular.
Topics
Share