EBA · 2024_7175 Rejected question

CRR3 - ETV calculation

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
Article 124, para. 6
Topic
Credit risk
Submitted by
Credit institution
Submitted
2024-08-19
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Question

With the CRR3 application, can you please confirm us the way to calculate the ETV ratio?

Background

Following Article 124§6, the Exposure-to-value (ETV) ratio shall be calculated by dividing the gross exposure amount by the property value. The article 124 is related to exposures secured by mortgages on immovable property and the paragraph 2 refers to the non-ADC exposures up to the nominal amount of the lien. We would like to know if the ETV calculation has to be calculated for the amount up to the nominal of lien and not on the whole amount of the loan. For example, if we have a loan of 300.000 EUR, the nominal amount of the lien (notary act) is equal to 100.000 EUR and the property value is equal to 200.000 EUR. What will be the ETV?
No answer published yet.

Original source: European Banking Authority, Q&A ID 2024_7175

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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