According to the FI SBTI target submission form (p.25), the asset class specific target language template includes asset classes like 1) real estate, 2) mortgages, 3) electricity generation project finance, 4) corporate instruments (equity, bonds, loans).
My questions are:
- Does the asset class “real estate” mean commercial mortgage loan?
- Does the asset class “mortgages” mean residential mortgage loan?
- If so, the applicable methods for setting targets regarding commercial mortage loans include SDA? (There is no “commercial mortgage loan” as an asset class in Table 5.2 in the FI guidance, but only “corporate loan: commercial real estate” and “listed equity and bonds: REITs, listed real estate companies, and real estate mutual funds” that are relevant to “real estate”.)
- Why is the unit of minimum coverage for “corporate loan: commercial real estate” m2? Isn’t the real estate corporates should also be considered as corporates? Shouldn’t the real estate corporate itself and the buildings it owns be distinguished?
Thank you in advance!