UniCredit Group revolutionizes real estate risk management for banks worldwide!
Banks like UniCredit Group are getting more involved in real estate, which can be risky. UniCredit created a real estate committee to manage this risk, following new guidelines. They developed a model to measure the risk by looking at property values and market volatility. The data showed that real estate is riskier than expected, leading to more capital needed to cover potential losses. They will use a similar method to determine loan sizes based on property values.