Tag Archives: Slotting

Slotting increases RBS’ risk-weighted assets by further £2.8bn

Royal Bank of Scotland has confirmed this morning that compliance with the incoming ‘slotting’ regime for the capital reserve treatment for commercial property lending has prompted a further £2.8bn increase in its risk-weighted assets. Slotting, a legacy capital reserve requirement … Continue reading

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RBS will near £50bn CRE de-leveraging since 2008 by year end

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Royal Bank of Scotland expects to shrink its non-core global commercial real estate loan book to a rump of less than £15bn by the end of this year which will crystalise a near £50bn de-leveraging programme in five years.  In … Continue reading

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IPD Slotting Paper: banks could reclassify property loans as corporate debt

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Banks and borrowers could start to reclassify investment property lending as corporate loans to side-step the slotting regime’s onerous capital reserve requirements, an authoritative research paper on the controversial regulatory regime suggests. IPD has this morning published a first-of-its-kind research … Continue reading

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PIA warns of slotting’s ‘negative property value feedback loop’

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The Property Industry Alliance (PIA), a body of seven separate trade associations, has warned that a hasty implementation of ‘slotting’ could lead to banks enforcing on defaulted loans backed by poor quality commercial property creating a “negative property value feedback … Continue reading

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Banks must dramatically improve risk models to gain ‘slotting’ exemption

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UK banks’ exemption from the Financial Services Authority’s controversial incoming “slotting” regime would only be considered if internal property lending models can be substantially improved. But the regulator, responsible for implementing the risk-weighted model to UK banks’ property loans, strongly … Continue reading

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Savills: Slotting will dramatically cut UK bank property lending

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UK banks’ ability and appetite to lend to domestic property will be dramatically curtailed by their requirement to hold tens of billions of pounds in extra capital against loans under the “slotting” regime to be implemented by the FSA from … Continue reading

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