Featured Product

    ESRB Amends Recommendation on Closing Real Estate Data Gaps

    August 13, 2019

    ESRB published, in the Official Journal of European Union, a recommendation (ESRB/2019/3) on closing real estate data gaps in EU. ESRB/2019/3 amends the recommendation ESRB/2016/14, which aims to harmonize the definitions and indicators used for monitoring residential real estate (RRE) and commercial real estate (CRE) markets and address the existing gaps in availability and comparability of data on RRE and CRE markets in EU.

    The implementation of a framework for monitoring developments in the real estate sector for financial stability purposes requires regular collection and distribution, at EU level, of comparable country data so that the real estate-related risks across member states can be more accurately assessed and the use of macro-prudential policy instruments can be compared. The statistical work most recently conducted by the ESCB Statistics Committee—assisted by its Real Estate Task Force—on the sources of data on indicators related to the financing of CRE and RRE has highlighted the need for amendments to certain definitions to facilitate the monitoring activities of national macro-prudential authorities. Thus, the definitions of CRE and of RRE in Recommendation ESRB/2016/14 needed to be amended to align them more closely with the broader definitions used in AnaCredit Regulation (EU 2016/867), with the aim to facilitate the required financial stability analyses and to allow for full comparability across countries.

    Additionally, to ensure the implementation of Recommendation ESRB/2016/14, it is necessary to extend certain deadlines set forth therein. The lack of commonly agreed working definitions of the relevant indicators on the physical CRE market is of a particular concern, which combined with the operational constraints on data availability makes it difficult to accurately assess and compare risks across national markets. Therefore deadlines for the implementation of Recommendation ESRB/2016/14 in relation to the indicators for which national macro-prudential authorities do not have the relevant information needed to be extended further, to allow sufficient time for the development of the necessary definitions and for data collection.

    ESRB acknowledges that further technical guidance and work on the target definitions and indicators may be required to accommodate the specificities of markets or market segments and to ensure the statistical quality of data. Further amendments to Recommendation ESRB/2016/14 may, therefore, also be necessary to address future developments regarding those target definitions and indicators. Given the above-mentioned issues, Recommendation ESRB/2016/14 has been amended as follows: 

    • In Section 1, paragraph 1 of Recommendation C and paragraph 2 of Recommendation D has been replaced.
    • Recommendation F has been added in Section 1.
    • Section 2(1)(1) has been amended and Section 2(3) has been replaced.
    • Annexes I, II, III, IV, and V to Recommendation ESRB/2016/14 have been replaced by Annexes I, II, III, IV, and V to Recommendation ESRB/2019/3.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Commercial Real Estate, Real Estate Data Gaps, Residential Real Estate, AnaCredit, Financial Stability, Recommendation, Macro-Prudential Policy, ESRB 2016/14, ESRB 2019/3, ESRB

    Featured Experts
    Related Articles
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Methodology and Draft Templates for Stress Tests in 2020

    EBA published a package for the 2020 EU-wide stress test exercise for banks.

    November 07, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of Plenary Meeting in Paris

    At the meeting, the Plenary reviewed vulnerabilities in the global financial system, fintech developments (including developments in the crypto-asset markets), ongoing work of FSB, and the work program for 2020.

    November 07, 2019 WebPage Regulatory News
    News

    EC Publishes Results of Fitness Check of Reporting Requirements in EU

    EC published results of the fitness check of supervisory reporting requirements in financial services legislation in EU.

    November 07, 2019 WebPage Regulatory News
    News

    BCBS Assesses NSFR and LE Rules in Argentina and China as Compliant

    BCBS published reports that assess the implementation of net stable funding ratio (NSFR) and large exposures, or LE, framework in Argentina and China.

    November 07, 2019 WebPage Regulatory News
    News

    HKMA Highlights Technology Initiatives at the Hong Kong FinTech Week

    HKMA co-organized, with InvestHK, the Hong Kong FinTech Week 2019, which was a five-day flagship fintech event that attracted thousands of attendees worldwide.

    November 06, 2019 WebPage Regulatory News
    News

    ECB Report on Fallback Provisions in Contracts Referencing EURIBOR

    ECB published a report, by private sector working group on euro risk-free rates, presenting recommendations for fallback provisions in contracts for cash products and derivative transactions referencing EURIBOR.

    November 06, 2019 WebPage Regulatory News
    News

    EC Regulation on Homogeneity of Underlying Exposures in Securitization

    EC published the Delegated Regulation 2019/1851 regarding the regulatory technical standards on the homogeneity of the underlying exposures in securitization.

    November 06, 2019 WebPage Regulatory News
    News

    FSI Examines Regulatory Approaches on Climate Risk Assessment

    The Financial Stability Institute (FSI) of BIS published a paper that examines the regulatory approaches being used for climate risk assessment in the insurance sector, in particular through enterprise risk management (ERM) frameworks.

    November 06, 2019 WebPage Regulatory News
    News

    SRB Launches Q&A Process for Resolution Reporting

    SRB has setup a dedicated solution for raising questions on the resolution reporting.

    November 06, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4112