• Question ID: 2025/0001
• Date of publication: 10/03/2025
• Subject matter: Protection items in AnaCredit
• AnaCredit Manual: Part II
• Data attribute: Type of protection

No conceptual change to the definition of “offices and commercial premises” following the entry into force of Regulation (EU) 2024/1623^[1]

Question

The European Parliament and the Council of the European Union have adopted Regulation (EU) 2024/1623 (CRR III), amending Regulation (EU) No 575/2013 (CRR), which became applicable on 1 January 2025. According to Annex IV of Regulation (EU) 2016/867 of the European Central Bank (the AnaCredit Regulation^[2]), the term “offices and commercial premises” is defined according to the CRR. This is further specified in the AnaCredit Reporting Manual,^[3] where the value “offices and commercial premises” is defined according to Article 126(1) of the CRR. However, with the replacement of the latter by a new Article 126 under Article 1(55) of the CRR III, could you please clarify the applicable definition of “offices and commercial premises” for AnaCredit data submissions for reference dates on or after 1 January 2025?

Answer

For AnaCredit reporting, the definition of “offices or other commercial premises” for data reported with reference dates after CRR III’s entry into force remains conceptually consistent with the definition applied to reference dates preceding this regulation and according to Article 199(2) of CRR III.

In particular, to determine whether non-residential real estate collateral meets the criteria for “offices or other commercial premises” in accordance with CRR III, the primary use or purpose of the property must be considered, with the following conditions being met:

• “the value of the property does not materially depend upon the credit quality of the obligor” (Article 199(2)(a) of the CRR);
• “the risk of the borrower does not materially depend upon the performance of the underlying property or project, but on the underlying capacity of the borrower to repay the debt from other sources, and as a consequence the repayment of the facility does not materially depend on any cash flow generated by the underlying property serving as collateral” (Article 199(2)(b) of the CRR).

This definition applies to all such protection items, irrespective of whether the reporting agent utilises the Standardised Approach or the Internal Ratings Based (IRB) Approach under the CRR.