EBA · 2017_3404 Rejected question

Treatment of claims secured on residential property collateral

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
501, para. 2
Topic
Credit risk
Submitted by
Individual
Submitted
2017-07-19
Browse ECB SSM Register → More Q&As on this regulation →

Question

As claims secured on residential property collateral are excluded from the calculation of the total amount owed, can the deduction factor be applied to these claims secured on residential property collateral even though the remaining total amount owed by the obligor (group) exceeds the EUR 1,5 million? Or does it mean that once the remaining amount owed exceeds the limit all claims by the same obligor (group) are not eligible for the deduction?

Background

As claims secured on residential property are excluded from the total amount owed calculation, the claims might be interpreted as preferential and would be eligible for the deduction factor in any case.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2017_3404

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.

Similar Q&As

Calculation of the collateral value of immovable property considering minimum level of over-collateralisation ratio

Answered 2021-12-17

Definition of exposures arising from mortgage lending

Answered 2023-02-10

Classification of loans collateralized by residential and commercial immovable property

Answered 2023-03-31

1756

Answered 2019-09-12

Capital requirements deduction for credit risk on exposures to SMEs

Answered 2017-10-06

More Q&As on this topic

Application of the currency mismatch treatment to self-employed individuals (natural persons carrying out an economic activity) under Article 123a CRR.

Answered 2026-07-31

Requirements for the purpose of treating exposures secured by mortgages on immovable property as duly secured from an RWA computation perspective under CRR Article 124(2) of the CRR.

Answered 2026-05-08

Use of credit assessments by ECAIs not in scope of Regulation (EC) No 1060/2009.

Answered 2026-03-13

US Hard test: adequacy of considering US charge-off rates corresponding to loss rates for exposures secured by residential property or commercial immovable property situated within the territory of the US

Answered 2026-02-27

Application of the SME definition in specific cases

Answered 2025-11-28

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.