4
Criteria for Certain Exposures Secured by Mortgages on Commercial Immovable Property
4.1
For the purposes of Articles 124(2) and 126(2) of the CRR and in addition to the conditions set out therein, a firm may only treat exposures as fully and completely secured by mortgages on commercial immovable property located in the UK in accordance with Article 126 of the CRR where annual average losses stemming from lending secured by mortgages on commercial property located in the UK did not exceed 0.5% of risk-weighted exposure amounts over a representative period. A firm shall calculate the loss level referred to in this rule on the basis of the aggregate market data for commercial property lending published by the PRA in accordance with Article 101(3) of the CRR.
- 01/01/2014
4.2
For the purposes of this rule, a representative period shall be a time horizon of sufficient length and which includes a mix of good and bad years.
[Note: Arts. 124(2) and 126(2) of the CRR]
- 01/01/2014