145. Competent authorities should also assess the materiality of the residual risk (as referred to …

Competent authorities should also assess the materiality of the residual risk (as referred to in Article 80 of Directive 2013/36/EU) and in particular the adequacy and enforceability of collateral agreements and of guarantees, the timing and the ability to realise collateral and execute guarantees under the national legal framework, the liquidity and volatility in asset values for collateral and the recoverable value of collateral under any credit enforcement actions. Competent authorities should also assess the concentration of guarantors and collateral, as well as the correlation with borrowers’ creditworthiness (i.e. wrong-way risk) and the potential impact in terms of the effectiveness of protection.

ESG factors

1. Overview

1.1 References

• Article 80 Residual risk

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

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