Under the CRR3 framework, Article 229(1)(d) establishes that the value applied by institutions may not exceed the property’s current market value. At the same time, Article 229 introduces a more structured approach to determining the property value, requiring institutions to compute an average based on a series of equidistant valuation points over a defined historical period. 

In practice, these two requirements may conflict in situations where the most recent market valuation is lower than both the origination value and the average value derived from the Article 229 methodology. Such cases raise an important question:  should the prudential cap in Article 229(1)(d) override the averaged value, thereby limiting the property value to the latest market valuation, even when the historical averaging process would otherwise produce a higher figure?