Allocation of loans and advances secured by more than one type of collateral in F 05.00 Breakdown of loans and advances by product

Answer · verbatim

F 05.00 Template requires a breakdown of loans and advances both by product and by type of counterparty. In this template, the entire amount of a given loan contract should be reported in the corresponding type (or types) of loans and advances and not been distributed among various types. The instructions for classifying loan contracts between the two types of collateralized loans ('

mortgage loans'

and '

other collateralized loans'

) say that '

mortgages loans'

include '

loans formally secured by immovable property independently of the loan/collateral ratio'

(Annex V. Part 2. Paragraph 41.(h) of the draft ITS on Supervisory reporting). Therefore, the entire amount of the contract should be reported in 'mortgage loans' regardless whether the loan is over-collateralized, under-collateralized or the real estate collateral is complemented by other collateral. The purpose of F 05.00 Template is to collect the amount of all contracts that are 'formally' mortgages.

The information on loans that are 'formally' mortgages is supplemented by information of the financial effect of the collateral in F 13.01 Template. The instructions for F 13.01 Template explicitly contemplate the case of loans with '

simultaneously more than one type of collateral'

and indicate that the allocation amount of the various types should be based on the 'quality' of the collateral (Annex V. Part 2. Paragraph 82 of the draft ITS on Supervisory reporting). It is expected that the institution will apply the allocation criterion consistently. See also EBA

Q&A 2013_124

.