Regulatory Alerts2025-01-01
Opinion of the EBA on measures in accordance with Article 458 of CRR on CRE exposures in Sweden
The European Banking Authority issued an opinion on 28 May 2025 endorsing the Swedish Financial Supervisory Authority's two-year extension of macroprudential measures for corporate exposures secured by immovable property. The measure imposes exposure-weighted average risk weight floors of 35% for commercial real estate and 25% for residential real estate on institutions using the Internal Ratings Based approach. The EBA concluded that the calibration remains adequate to cover potential losses in stressed scenarios, while urging the Swedish FSA to avoid overlaps with other micro-prudential requirements and to assess the measure's appropriateness alongside upcoming CRR changes.
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