The European Banking Authority (EBA) today launched a public consultation on its draft amending Regulatory Technical Standards (RTS) on the types of factors to be considered by national authorities in assessing the appropriateness of real estate risk weights. This review is driven by the revised Capital Requirements Regulation (CRR 3), which confers a new mandate onto the EBA. The consultation runs until 30 May 2025.

Based on the assessment of the CRR3 changes to the treatment of exposures secured by immovable property, the only proposed amendment to the existing RTS consists in updating the relevant legal references to align with the new banking framework.

It is important to note that the original RTS were delivered jointly with another set of technical standards on the appropriateness of the minimum loss given default (LGD) values for retail exposures secured by immovable property. For the sake of simplification and regulatory consistency, the EBA is, therefore, proposing to align both RTS with the CRR3.

Given the narrow scope of the amendments to the RTS, the EBA will run this consultation over only month. 

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 30 May 2025.

A public hearing  will take place via conference call on Tuesday 13 May from 14:00 to 15:00 CEST. The deadline for registration is the 9 May 2025, 16:00 CEST.