Repost - 67% of CRE including SMEs and indirect loans?

Hi there,

Apologies for the repost, I have not seen a response for a few weeks.

Can I please ask for a clarification on the scope of the CRE requirement?

  • You have a 67% by floor space requirement. Does this mean you only require direct lending for CRE (i.e. mortgages)? This would mean that any indirect lending (e.g. to REITs) would fall under the ‘67% of remaining portfolio requirement’.
  • Are loans to SMEs included in this 67% floor space requirement or can SMEs be excluded?

Noting that PCAF has a requirement for both direct and indirect CRE lending. My understanding from your guidance is the 67% coverage is direct lending. The corporate loans to CRE companies (indirect) would then be covered in the 'remaining 67% of loans requirement; is this correct?

Many thanks,