+171. In the assessment of the borrower’s repayment capacity, institutions should assess, where …
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171. In the assessment of the borrower’s repayment capacity, institutions should assess, where …
In the assessment of the borrower’s repayment capacity, institutions should assess, where relevant: - a. the sustainability of the cash flow;
- b. the quality of the tenants, the impact of changes to current rental income on the amortisation schedule, lease terms, maturities and conditions, and payment history of the tenant if already in place;
- c. reletting prospects, the cash flow required to service the loan in accordance with the loan agreement if there are needs for reletting, if applicable the performance of the asset in an economic downturn, and fluctuations in rental yields over time, to assess the presence of overly compressed yields;
- d. necessary capital expenditure on the property throughout the term of the loan.
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
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Requirement |
3. Related Standards
Standards
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Requirement |
- EBA -
EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.
DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.
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