RICS Knowledgebase

Application of Basel III principles were included in the 2024 consultation of the Global Red Book – feedback meant this was not included in the final 2025 edition but have been addressed separately.

Current RICS standards and guidance on bank lending valuations, although addressing both market value and mortgage lending value, does not refer to the issues raised by the developing partial and variable adoption of the Basel III prudently conservative valuation criteria at a global level.

A second edition comes into force January 2026 and has been revised to reflect significant regulatory changes, particularly the new Basel 3.1 guidance and the EU's Capital Requirements Regulation (CRR III). These updates introduce ‘prudently conservative valuation criteria’, which will have a major impact on how property valuations are conducted for secured lending.

Bank lending valuations: Basel 3.1 prudently conservative valuation criteria adjustments, RICS practice information, global, 1st edition

It is designed to assist professionals, lenders and regulators in understanding the implications of the Basel 3.1 prudently conservative valuation criteria for their work.

Both of the above are available on a dedicated Bank Lending Valuations page https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/bank-lending-valuations

Some historical information about the topic from January 2025 is available here: https://www.rics.org/news-insights/rics-expert-group-bank-lending-valuations-basel-iii-accord

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