Germany's Federal Financial Supervisory Authority (BaFin) has launched a written consultation on a draft circular intended to incorporate the European Banking Authority (EBA) guidelines on ADC risk exposures to residential property under Article 126a of the Capital Requirements Regulation (Regulation (EU) No 575/2013). BaFin intends to notify the EBA at the earliest possible opportunity that it will take these guidelines into its supervisory administrative practice. The draft circular implements EBA/GL/2025/03 and is positioned as a clarification of how ADC risk exposures to residential property are to be treated under Article 126a CRR. BaFin noted that the EBA has already run a consultation on the underlying guidelines and published the results. Comments on BaFin’s draft are due by 05 May 2026, with submissions to be made in writing only. BaFin plans to publish incoming responses online unless respondents object to publication or onward sharing.
BaFin 2026-04-21
Germany's Federal Financial Supervisory Authority consults on adopting EBA guidelines for ADC residential property risk exposures under CRR Article 126a
The Federal Financial Supervisory Authority (BaFin) has launched a written consultation on a draft circular to incorporate the European Banking Authority guidelines on acquisition, development and construction (ADC) risk exposures to residential property under Article 126a of the Capital Requirements Regulation. The draft circular implements EBA/GL/2025/03 to clarify the supervisory treatment of such exposures, and BaFin intends to notify the European Banking Authority that it will adopt the guidelines into its supervisory practice.