RFC issued on LGD proposal

Category: Structured Finance

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RFC issued on LGD proposal
The EBA has published a consultation paper on draft Regulatory Technical Standards specifying the types of factors to be considered when assessing the appropriateness of risk weights and minimum loss given default (LGD) values for exposures secured by immovable property. Relevant authorities, as designated by a Member State, may set higher risk weights or impose stricter criteria on risk weights, or increase the minimum LGD values when two conditions are met.

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