EBA · 2026_7923 Rejected question

Risk weights assignment to IPRE exposures secured by many properties

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
125, 126, para. 2
Topic
Credit risk
Submitted by
Consultancy firm
Submitted
2026-06-26
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Question

Articles 125 and 126 paragraph 2 Regulation (EU) No 575/2013 (CRR) specify the rules for risk weights assignment to IPRE exposures, respectively secured by residential and commercial properties. However, these regulations don’t clarify how risk weights should be assigned to IPRE exposure when it’s secured by both residential and commercial property – especially when one property is IPRE (income producing property) and the second one is non-IPRE (the residential property, let’s assume that this is the flat of a counterparty).

Background

Let’s assume the simple example: that we have exposure A of EAD = 1000 secured by: Property X of value 500, which is non-IPRE, residential property (let’s assume that this is the flat of a counterparty) Property Y of value 500, which is IPRE commercial property. So both properties cover the exposure A equally in 50%/50%. We have the following question: Should the risk weight be assigned only based on the table from article 126.2 CRR (so for commercial properties, because only commercial property is IPRE)? Or should we assign the different risk weights separately to the part of exposure A covered by property X based on article 125.2 CRR (so the rules for residential property) and to the part of exposure A covered by property Y based on article 126.2 CRR (so the rules for commercial property)? Let's assume that property X is also IPRE residential property - based on the described example how should we assign the risk weights to an exposure with such collaterals? Articles 125 and 126 CRR also don't clarify risk weights assignment in such situation
No answer published yet.

Original source: European Banking Authority, Q&A ID 2026_7923

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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