RTS: Risk weights and loss given default for immovable property exposures
COMCMT1R-EP1R-C2R-EPCNCADO
Updated 46mo ago
This regulation sets out technical standards for assessing the risks associated with loans secured by immovable property. It ensures banks and other financial institutions appropriately consider property values and potential losses when calculating capital requirements.
It affects banks, credit institutions, insurance companies, and pension funds. The rules aim to strengthen financial stability by ensuring adequate capital buffers against property market downturns.