Basel ‘cannot justify’ mortgage risk weights

By Tom Porter
23 Mar 2015

The UK’s Council of Mortgage Lenders has said the Basel Committee on Banking Supervision has presented “no evidence” to justify the higher risk weightings proposed for mortgages.

The CML is preparing its response to a consultation launched by the Basel authorities in December, which proposed a radically different method of calculating risk weights on residential real estate lending.

Under the proposals lower loan-to-value ratio (LTV) mortgages would no longer incur a 35% risk weight across ...

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