Ekonomiczne granice nieruchomości przemysłowej a wartość wskaźnika LtV

Abstract

Credit exposures secured by mortgages are the dominant part of the domestic loan portfolio of the banking sector. One of the most important indicators describing the property-derived credit risk is the so-called LtV (loan-to-value) ratio. In June 2013, the Polish Financial Supervision Authority issued the 4th version of the S Recommendation concerning the best practices in the management of credit exposures secured by mortgages. This legal act defines LtV as the ratio of loan exposure to real estate values. The article pointed out the shortcomings such a definition, while submitting for discussion the need to clarify its components, especially in the case of credit exposures secured by real estate industry.This is due to the fact that the value of the industrial property determined by the value of land and buildingsbut also by assets indelibly associated with the property itself like technical equipment or machinery.This situation may cause challenges in determining economic and legal limits of the industrial property, which can result in incorrect presentation of the LtV ratio.

Keywords

• ltv
• mortgage security
• industrial real estate
• credit risk
• s recommendation