The European Banking Authority (EBA) has opened a public consultation on draft amendments to its Regulatory Technical Standards (RTS) specifying the factors national authorities should consider when assessing the appropriateness of risk weights for exposures secured by immovable property. The review is driven by the revised Capital Requirements Regulation (CRR 3), which gives the EBA a new mandate in this area, and the proposal is limited in scope. Based on its assessment of CRR 3 changes to the treatment of real estate-secured exposures, the draft amendments would only update legal references in the existing RTS to align them with the new framework. For simplification and regulatory consistency, the EBA is also proposing to align the related RTS on the appropriateness of minimum loss given default (LGD) values for retail exposures secured by immovable property with CRR 3. The draft RTS are developed under Article 124(11) of Regulation (EU) 2024/1623, in close cooperation with the European Systemic Risk Board. Comments are due by 30 May 2025. The EBA will hold a public hearing by conference call on 13 May 2025 (14:00–15:00 CEST), with registration closing on 9 May 2025 (16:00 CEST), and it will publish contributions after the consultation closes unless respondents request otherwise.
European Banking Authority 2025-04-30
European Banking Authority launches consultation on CRR3-aligned amendments to real estate risk weight assessment standards
The European Banking Authority (EBA) has launched a public consultation on draft amendments to its Regulatory Technical Standards (RTS) concerning risk weights for exposures secured by immovable property, driven by the revised Capital Requirements Regulation (CRR 3). The amendments update legal references to align with CRR 3 and propose aligning RTS on minimum loss given default (LGD) values for retail exposures secured by immovable property. The draft RTS are developed under Article 124(11) of Regulation (EU) 2024/1623, in collaboration with the European Systemic Risk Board.