S.L. 371.17 Art. 4BExposures secured by mortgages on immovable property (risk weights).

In terms of Article 4(2) of the Act, the competent authority shall, at least annually and jointly with the Central Bank, assess whether the risk weights referred to in Article 125(2) or 126(2) of the CRR adequately reflect the actual risks related to exposures to one or more property segments fully secured by mortgages on residential property or on commercial immovable property located in Malta in accordance with Article 124 of the CRR. Where such risk weight is deemed not appropriate, the competent authority, jointly with the Central Bank, may adjust the risk weights in accordance with the following ranges:

(a) 35% to 150% for exposures secured by mortgages on residential property;

(b) 50% to 150% for exposures secured by mortgages on commercial immovable property.