64. Collateral

In the period ended 31 December 2020, the Bank did not make any changes to its collateral policies.

The Group takes into account the collateral held for credit exposures when estimating the expected credit loss. With respect to individually significant exposures that meet the conditions for impairment, future collateral recoveries are estimated individually and taken into account in determining the expected loss, with a weight corresponding to the assessment of the probability of implementation of the debt recovery scenario.

The value of collateral recoveries estimated under the recovery scenario for impaired exposures at the balance sheet date was PLN 2 109 million (as at 31 December 2019 PLN 2 418 million).

The Group does not have any exposures for which, due to the value of the collateral, it has not recognized an allowance for expected credit loss.