When did the Member last change the minimum LGD values for exposures secured by mortgages on residential property? Which change has been applied? 3.5 Frequency/review When did the Member State last change the minimum LGD values for exposures secured by mortgages on commercial immovable property? Which change has been applied? How long will the higher risk weights apply? When will the decision be reviewed? Reason for setting higher minimum values of exposure weighted average LGD values What were the minimum values for exposure weighted average LGD for residential and commercial immovable property before January 2014? Is the objective of setting higher minimum LGD values a continuation of 4.1 Regulatory context the previous regulatory treatment of residential and commercial property exposures? Do you a similar measure in the context of real estate exposures under Article 124 CRR? Specify the reasons why the minimum LGD values for retail exposure secured by residential (10%) or commercial (15%) property segments 4.2 Risk weights versus actual risks do not reflect the actual risks related to these exposures and put your answers in perspective to the real estate markets of other European countries. a) Loss experience Give details the loss experiences in the real estate market of the Member State that justify the setting of higher minimum LGD values. Which of the data mentioned in Article 101 CRR did you consider? Which other indicators have been taken into account? b) Forward-looking real estate market developments Describe the forward-looking real estate market developments 4.3 Motivation which justify the setting of higher minimum LGD values. Provide the indicators and other relevant information on the basis of which the assessment is made. If possible please provide the corresponding data (preferably an Excel-file). c) Financial stability considerations Which are the financial stability considerations that were taken into account? Provide the indicators on the of which the assessment is made. If possible please provide the corresponding data (preferably an Excel-file). Cross-border and cross-sector impact of the measure Assessment of the cross-border effects of the implementation of the 5.1 Assessment of cross-border measure. effects and the likely impact on the internal market Assessment of the spillover channels operating via risk adjustment and regulatory arbitrage. The relevant indicators provided in
3.5 Frequency/review When did the Member last change the minimum LGD values for exposures secured by mortgages on residential property? Which change has been applied? When did the Member State last change the minimum LGD values for exposures secured by mortgages on commercial immovable property? Which change has been applied? How long will the higher risk weights apply? When will the decision be reviewed? Reason for setting higher minimum values of exposure weighted average LGD values 4.1 Regulatory context What were the minimum values for exposure weighted average LGD for residential and commercial immovable property before January 2014? Is the objective of setting higher minimum LGD values a continuation of the previous regulatory treatment of residential and commercial property exposures? Do you a similar measure in the context of real estate exposures under Article 124 CRR? 4.2 Risk weights versus actual risks Specify the reasons why the minimum LGD values for retail exposure secured by residential (10%) or commercial (15%) property segments do not reflect the actual risks related to these exposures and put your answers in perspective to the real estate markets of other European countries. 4.3 Motivation a) Loss experience Give details the loss experiences in the real estate market of the Member State that justify the setting of higher minimum LGD values. Which of the data mentioned in Article 101 CRR did you consider? Which other indicators have been taken into account? b) Forward-looking real estate market developments Describe the forward-looking real estate market developments which justify the setting of higher minimum LGD values. Provide the indicators and other relevant information on the basis of which the assessment is made. If possible please provide the corresponding data (preferably an Excel-file). c) Financial stability considerations Which are the financial stability considerations that were taken into account? Provide the indicators on the of which the assessment is made. If possible please provide the corresponding data (preferably an Excel-file). Cross-border and cross-sector impact of the measure 5.1 Assessment of cross-border effects and the likely impact on the internal market Assessment of the cross-border effects of the implementation of the measure. Assessment of the spillover channels operating via risk adjustment and regulatory arbitrage. The relevant indicators provided in
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