On Nov. 25, DEN FSA published loss levels for real estate mortgages.
DEN FSA published loss levels for exposures secured by mortgages on real estate.
Also published notice on assessment of whether there is a well-developed and well-established property market in Denmark, the Faroe Islands and Greenland.
In accordance with provisions in capital requirements regulation (CRR).
Assessment
DEN FSA assessed well-established, well-developed market for residential and commercial properties in Denmark, with exception of agricultural, industrial properties.
Assessed that the market for agricultural land is well developed and well established.
For agricultural properties, not considered to be sufficient market turnover, liquidity.
Deviation Options
On basis of assessment, institutes can deviate from CRR requirement for Danish exposures completely secured by mortgages on residential properties, agricultural land and commercial properties that are not agricultural /industrial / craft properties.
Similarly, from Jan. 1, 2025, credit institutions have option to deviate from CRR3 requirement on Danish exposures which are fully secured by mortgages on residential properties, agricultural land and commercial properties.
