All the required activities should be included to get validation, even they are negligible?

Criteria
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Hi Eoin,

I’m trying to set the target boundary of portfolio targets.

According to the FI guidance, ‘Corporate loan: commercial real estate’ is one of the required activities that shall be included in the target boundary.

It seems that our proportion of ‘corporate loan: commercial real estate’ in total corporate loan is very small, like 1%. As the proportion is only 1% and it seems it is a negligible number, is it possible to exclude ‘commercial real estate corporate loan’ when setting the corporate loan target to get validation?

If it is possible, what will be the number that can be judged as “negligible” that can be exluded from setting the target?

Thank you very much in advance,
Seajin

1 Like
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Hi Seajin,

‘Corporate loan: commercial real estate’ is indeed one of the required activities and therefore must be covered by targets in line with the FI Guidance criteria, regardless of its size.

Thanks,
Howard