Regulatory Technical Standards concerning the assessment of appropriateness of risk weights and minimum LGD values
- Status: Final draft RTS/ITS adopted by the EBA and submitted to the European Commission
These Regulatory Technical Standards (RTS) specify the types of factors to be considered for the assessment of appropriateness of risk weights when these do not adequately reflect the actual risks related to the exposures secured by mortgages on residential property or commercial immovable property, or that the minimum loss given default (LGD) values are not adequate. The RTS also specify the conditions to be taken into account for the assessment of appropriateness of minimum LGD values.