For every loan secured by property the bank must decide whether it is a regulatory real estate exposure, meaning finished property, legally enforceable first-ranking claim, documented borrower repayment capacity and prudent independent valuation (CRE20.69 to 20.71, 20.73). It must compute LTV using the loan including undrawn commitments, gross of provisions, over the property value fixed at origination unless revised downward, never above market value or purchase price (CRE20.74 to 20.76). Residential exposures not dependent on property cash flows use the whole loan grid from 20% (LTV at or below 50%) to 70% (above 100%), or loan splitting at 20% up to 55% of value; cash-flow-dependent residential ranges from 30% to 105% (CRE20.82 to 20.84). Commercial exposures take the lower of 60% and the counterparty weight up to 60% LTV, and 70%, 90% or 110% when cash-flow dependent; a loan is dependent where more than 50% of income used in the assessment comes from the property (CRE20.79 to 20.87). Other real estate takes 75% for individuals, 85% for SMEs, or 150% when cash-flow dependent; land acquisition, development and construction is 150%, or 100% for qualifying residential projects (CRE20.88 to 20.91). Unhedged retail and residential exposures to individuals with a currency mismatch receive a 1.5 multiplier capped at 150%, where hedges must cover at least 90% of the instalment (CRE20.92 to 20.93).
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.