Measures in accordance with Article 124 CRR (applicable since 1.1.2014)
Croatia has determined stricter definitions of collateral in the form of residential property:
- Residential property (houses, apartments, plots of land; garages, parking spaces, where they are connected to immovable property) can be used as collateral on loans, if the immovable property is used.
Holiday homes are now exempted from consideration.
- The residential property must be used by the owner (a natural person) themselves or rented by the owner to another natural person for residential purposes.
- The owner may not own more than two residential properties.
Ireland has defined a risk weight of 100 % (instead of 50 %) for loans backed by commercial immovable property and has tightened the criteria set for the credit to be considered to be “fully collateralised” and to therefore be able to be assigned a 35% risk weight:
- the borrower must use the residential property themselves and
- the Loan-To-Value ratio may not exceed 75 %.
Measures in accordance with Article 164 CRR (applicable since 1.1.2014)
Norway increased the LGD values for residential property from 10 % to 20 %.
This notice is supplied by the Financial Market Authority solely for information purposes. No rights and obligations over and above the provisions of the law can be derived from this information.