Loyal readers know that, while the implementation of Basel III finalisation remains uncertain in the US (where it's called Basel Endgame) and was delayed in the UK (where it’s called Basel 3.1), the EU brought the package of measures in with effect from the beginning of 2025. An element of the package is the requirement to use “prudently conservative valuation criteria” to derive a “property value” for the purposes of LTV-based RWA calculations.
The IVSC published a statement about this in April (here). Last week, the RICS published guidance materials for valuers, lenders and regulators involved in bank lending valuations across Europe and worldwide. Those materials (we were not involved in their development) are available here. Many thanks to Ayda Chamcham at Aareal for flagging.
We will be discussing this subject at our first ever gathering in Amsterdam on 6 November. We are more or less at capacity, but please register interest here if you would like to join us and we’ll see what we can do).
