Minimum Capital Requirements for Credit Risk

Real estate is immovable property that is land, including agricultural land and forest, or anything treated as attached to land, in particular buildings, in contrast to being treated as movable/personal property. The real estate exposure asset class consists of: 1. Exposures secured by real estate that are classified as “regulatory real estate” exposures. 2. Exposures secured by real estate that are classified as “other real estate” exposures. 3. Exposures that are classified as “land acquisition, development and construction” (ADC) exposures. 7.62 “Regulatory real estate” exposures consist of: 1. “Regulatory residential real estate” exposures that are not “materially dependent on cash flows generated by the property”. 2. “Regulatory residential real estate” exposures that are “materially dependent on cash flows generated by the property”. 3. “Regulatory commercial real estate” exposures that are not “materially dependent on cash flows generated by the property”. 4. “Regulatory commercial real estate” exposures that are “materially dependent on cash flows generated by the property”. Regulatory real estate exposures