The European Banking Authority has published final draft amendments to its Regulatory Technical Standards (RTS) on the factors national authorities should consider when assessing whether risk weights for exposures secured by immovable property are appropriate under the Standardised Approach. Following its review of the revised Capital Requirements Regulation (CRR3), the EBA concluded that the only required change is to update legal references to align the RTS with the new framework. The RTS also cover a related mandate under the internal ratings-based (IRB) approach on assessing the appropriateness of minimum loss given default (LGD) values for retail exposures secured by immovable property. To simplify and ensure regulatory consistency, the amendments likewise align the RTS legal references for the IRB elements with CRR3. The final draft RTS were developed under Article 124(11) of Regulation (EU) 2024/1623 (CRR3) in close cooperation with the European Systemic Risk Board and are to be submitted to the European Commission.
European Banking Authority 2025-12-10
European Banking Authority publishes final draft amendments updating CRR3 legal references in real estate risk weight assessment standards
The European Banking Authority published final draft amendments to its Regulatory Technical Standards on risk weights for exposures secured by immovable property under the Standardised Approach, updating legal references to align with the revised Capital Requirements Regulation (CRR3). The amendments also address minimum loss given default values for retail exposures under the internal ratings-based approach, ensuring consistency with CRR3. Developed under Article 124(11) of Regulation (EU) 2024/1623, the RTS will be submitted to the European Commission.