Immovable property losses

This publication provides a centralised and harmonised source of data on losses and exposures relating to residential and commercial immovable property across the EU/EEA. 

The data are drawn from supervisory reporting submitted by institutions and are presented by national immovable property market. These data are relevant for the application of the CRR “hard test” mechanism, under which certain preferential treatments for exposures secured by immovable property may be used where the relevant loss-rate thresholds are met. In particular, the published data support the application of the following CRR provisions: 

• Article 125(2), which allows institutions, where the relevant conditions are met, to apply the loan-splitting approach to income-producing residential real estate exposures; 

• Article 126(2), which provides for an equivalent treatment for income-producing commercial real estate exposures; 

• Article 199(3) and Article 199(4), which allow institutions using the Internal Ratings Based approach to recognise residential or commercial immovable property as eligible collateral, including where repayment materially depends on the cash flows generated by the property, provided that the applicable legal conditions are fullled. 

The publication is intended to improve transparency, promote simplication and facilitate the consistent application of the above mentioned CRR provisions. It does not amend the legal conditions set out in the CRR, nor does it constitute a separate supervisory decision on the eligibility of individual exposures. Institutions remain responsible for assessing whether the relevant CRR conditions are met when applying the corresponding treatments.