144. For the purpose of the calculation of the realised LGDs, institutions should take into account …

For the purpose of the calculation of the realised LGDs, institutions should take into account all material direct and indirect cost related to the recovery process. Where any material direct or indirect costs relating to the collection on exposures and the default of the respective counterparty have been incurred before the moment of default institutions should include these costs in the LGD estimation unless at least one of the following conditions is met:

• (a) these costs are clearly included in the outstanding amount of the credit obligation at the moment of default;
• (b) these costs are associated with the previous default of the same obligor, which is not considered a multiple default in accordance with paragraph 101.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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