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    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.


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    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

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