EBA · 2014_1023 Rejected question

The mortgage lending value of the German property

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
124, para. 1
Topic
Credit risk
Submitted by
Credit institution
Submitted
2014-03-27
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Question

The part of an exposure treated as fully secured by a German property shall be the lower amount of the market value or the mortgage lending value of the property. Does it mean that the mortgage lending value of the German property must be determined so that the property can be treated as collateral? How shall we treat the German property, in which only the market value exists, but not the mortgage lending value?

Background

We don't use the mortgage lending value of the property in Austria so that the part of an exposure treated as secured will be only determind by the market value of the property.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2014_1023

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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