Foreclosed Asset
From Open Risk Manual
Definition
Foreclosed Asset (in EU Context [1]) is defined as an asset held on the balance sheet of a Credit Institution obtained by taking possession of Collateral, or by calling on similar Credit Enhancement.
Those assets can be obtained through judicial procedures (“foreclosed” in the strict sense), through Bilateral Agreement with the debtor (swap or sale) or other types of collateral transfer from debtor to creditor. Foreclosed assets comprise both financial assets and non-financial assets.
Foreclosed assets include all collateral obtained irrespective of their classification for accounting purposes (e.g. including assets for own use and for sale).
See Also
References
- ↑ ECB Guidance to banks on non-performing loans, March 2017
