On 17 May 2024, the European Banking Authority (EBA) launched a public consultation on its guidelines under the Capital Requirements Regulation (CRR III) on acquisition, development and construction (ADC) exposures to residential property. The guidelines set out credit risk mitigation requirements and address the specificities of institutions that lend to public housing or non-profit entities.
On 17 May, the EBA launched a public consultation on its guidelines under the Capital Requirements Regulation (CRR III) on acquisition, development and construction (ADC) exposures to residential property. The guidelines set out credit risk mitigation requirements and address the specificities of institutions that lend to public housing or non-profit entities. In particular, the guidelines provide details on the two conditions introduced in CRR III for ADC exposures to residential property to benefit from a 100% risk weight (instead of 150%).
Feedback is expected by 19 August 2024.
Please see h
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