Recital 1

(1)Article 124(2) of Regulation (EU) No 575/2013, on the one hand, deals with the assessment of the appropriateness of risk weights for exposures secured by mortgages on residential property and commercial immovable property. Article 164(6), of Regulation (EU) No 575/2013, on the other hand, deals with the assessment of the appropriateness of minimum loss given default (‘LGD’) values for exposures secured by mortgages on residential property or commercial immovable property. Both provisions thus deal with the calibration of parameters for exposures secured by immovable property. It is therefore appropriate that the types of factors to be considered for the assessment of the appropriateness of those risk weights and the conditions to be taken into account for the assessment of the appropriateness of those minimum LGD values are specified in a coherent manner.