113. As part of the creditworthiness assessment, institutions should carry out sensitivity analyses …

As part of the creditworthiness assessment, institutions should carry out sensitivity analyses to reflect potential negative market and idiosyncratic events in the future that are relevant to the type and purpose of the loan. These events may include a reduction in income; an increase in interest rates in cases of variable rate loan agreements; negative amortisation of the loan; balloon payments or deferred payments of the principal or interest; and, when relevant, deterioration in the marketability of the immovable property, an increase in vacancy rates and a reduction in the rental prices for similar properties. When relevant, institutions and creditors should also consider the implication of foreign currency exchange rate risk, as provided in paragraph 108.

5.2.4 Unsecured lending to consumers

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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