ESRB Amends Recommendation on Closing Real Estate Data Gaps
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
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
ESRB Receives Notification on Identification of O-SIIs in DenmarkRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.