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Recital 2

Recital 2

(2)In addition, Regulation (EU) 2024/1623 also amended Article 164(4) of Regulation (EU) No 575/2013, which deals with the treatment of retail exposures under the Internal Ratings Based Approach for credit risk, by inserting in that paragraph a table with loss given default (LGD) input floor values, to be used by institutions for their retail exposures secured by residential property or other retail exposures secured by residential property or commercial immovable property. As a consequence, references in Article 164 of Regulation (EU) No 575/2013 to minimum LGD values were replaced by references to LGD input floor values. It follows that those amendments should equally be reflected in Delegated Regulation (EU) 2023/206 with no other substantive change.

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