Stats › Valuation › Bad loan rules
A European loan turns bad at ninety days and one hundred euro, and must be fully provided for within ten years
| Exposure type | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|
| Unsecured | 0.35 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Secured by immovable property | 0 | 0.25 | 0.35 | 0.55 | 0.70 | 0.80 | 0.85 | 1.00 |
| Secured by other credit protection | 0 | 0.25 | 0.35 | 0.55 | 0.80 | 1.00 | 1.00 | 1.00 |
| Covered by an export credit agency | 0 | 0 | 0 | 0 | 0 | 1.00 | 1.00 | 1.00 |
The prudential backstop factors in Article 47c of the capital requirements regulation, as inserted by Regulation (EU) 2019/630. A factor of 1.00 means the exposure must be fully covered by own funds deductions. The zeros shown for early years are implied by the absence of a stated factor rather than read as a stated zero, and the application dates of the calendar could not be verified.
Two numbers decide whether a loan is non-performing: ninety days past due, and an amount over 100 euro for retail or 500 euro for others that is also over one per cent of the exposure. From there a statutory calendar forces provisions to 100 per cent.
Members only
The rest of this page is for members
Below this point there are 3 sections and 3 named sources, roughly 350 words of it. Every figure carries the source it came from and the date the data is from.
You can keep browsing every statistic in the library for free. The intro and the summary are always open.