120. In accordance with point (f) of paragraph 115 institutions may specify and recognise any other …

In accordance with point (f) of paragraph 115 institutions may specify and recognise any other forms of realising collaterals adequate to the types of collaterals used by the institution that are eligible under the applicable legal framework. When recognising such other forms of realising collateral, institutions should take into account the fact that the collateral may take various forms and that various forms of collaterals may be related to the same asset. Where different forms of collateral refer to the same asset but the realisation of one of the collaterals does not decrease the value of the other, institutions should consider them separate collaterals in the process of LGD estimation. In particular, institutions should recognise separately the form of collateral which gives a right to repossess or sell the asset (such as a mortgage) and the form of collateral which gives a right to collect cash flows generated by the asset (such as a cession of rent or fees).

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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