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Recital 6

Recital 6

(6)Article 124(2) and Article 164(6), of Regulation (EU) No 575/2013 allow for the assessment of the appropriateness of risk weights or minimum LGD values for one or more property segments or for one or more parts of the territory of a Member State. It should thus be provided that the types of factors or the conditions for the assessment of the appropriateness of risk weights or minimum LGD values may be applied to one or more property segments or to one or more parts of the territory of a Member State. It is however possible that data collected by means of Union harmonised reporting are not sufficiently granular to allow for the assessment of the appropriateness of risk weights or minimum LGD values at the level of such property segment or part of a territory of a Member State. Where that is the case, the authorities designated in accordance with Article 124(1a) and Article 164(5) of Regulation (EU) No 575/2013 should be able to use additional sources of data for those assessments.

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