EBA · 2023_6786 Rejected question

Explanation regarding the term "non-reducible"

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
212, para. 2
Topic
Credit risk
Submitted by
Credit institution
Submitted
2023-04-24
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Question

Could you please explain what does mean the term "nonreducible" in the context of life insurance policy pledged to a lending institution?

Background

Article 212 (2) (g) of CRR2 indicates that a life insurance policies pledged to a lending institution can notably be considered as an eligible credit protection if the surrender value declared by the insurer is non-reducible. The purpose of this question is to understand what the term "non-reducible" means.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2023_6786

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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