DR2023-206: consolidated version of 27 Jul 2026
- Import status
- published
- Applies from
- 27 Jul 2026
- Compared with
- 02023R0206-20230221
- Source
- 02023R0206-20260727
Read the wording changes provision by provision (the reader-facing comparison on Regulatory changes)
- Units
- 60
- Added
- 0
- Changed
- 19
- Removed
- 0
- Notes affected
- 0
Changes by article (4)
Article 1 · Types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable property
Article 1 Types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable property
1. When assessing the appropriateness of the risk weights referred to in Article 124(29), first subparagraph, of Regulation (EU) No 575/2013, the authorities designated in accordance with Article 124(1a8) of that Regulation shall determine all of the following:
(a) the loss experience as the ratio of the following:
(i) in the case of exposures secured by residential property or by mortgages on residential property as referred to in Article 124(29), first subparagraph, of Regulation (EU) No 575/2013, the losses reported in accordance with Article 430a(1), point (a), of that Regulation and the exposure value reported in accordance with Article 430a(1), point (c), of that Regulation;
(ii) in the case of exposures secured by commercial immovable property or by mortgages on commercial immovable property as referred to in Article 124(29), first subparagraph, of Regulation (EU) No 575/2013, the losses reported in accordance with Article 430a(1), point (d), of that Regulation and the exposure value reported in accordance with Article 430a(1), point (f), of that Regulation;
(b) the loss expectation as the best estimate of losses to be realised during a forward-looking horizon of at least one year, and, if so determined by that authority, up to three years.
For the purposes of point (b), the loss expectation shall be determined as the average of the estimated losses for each year during the chosen forward-looking horizon.
2. The authorities designated in accordance with Article 124(1a8) of Regulation (EU) No 575/2013 shall determine the loss expectation referred to in paragraph 1, point (b), in either of the following ways:
(a) by adjusting the loss experience referred to in paragraph 1, point (a), upwards or downwards;
(b) by keeping the loss experience unchanged.
When determining the loss expectation referred to in paragraph 1, point (b), the authorities shall reflect the forward-looking immovable property market developments referred to in Article 124(29), first subparagraph, point (b), of Regulation (EU) No 575/2013 during a forward-looking horizon of at least one year and, if so determined by that authority, up to three years.
3. The loss expectation referred to in paragraph 1, point (b), and determined in accordance with paragraph 2, shall be based on all of the following:
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(d) the riskiness of the exposures secured by immovable property, as measured by all of the following:
(i) indicators relevant for the property segments of the Member State and, where relevant, for parts of the territory of that Member State, having regard to Section 6 of the EBA Guidelines on subsets of exposures in the application of a Systemic Risk Buffer (), issued in accordance with Article 133(6) of Directive 2013/36/EU of the European Parliament and of the Council ();
(ii) the lending standard indicators specified in the recommendation of the European Systemic Risk Board on closing real estate data gaps ();
(e) the expected evolution in immovable property market prices and the expected volatility in those prices, including an assessment of the uncertainty around such expectations;
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(i) any other data indicators and sources which provide insight into forward-looking property market developments which affect the loss expectation referred to in paragraph 1, point (b), or support the data quality of the loss experience referred to in paragraph 1, point (a).
4. Where there is a lot of uncertainty as to the factors referred to in paragraph 3, point (e), the authorities designated in accordance with Article 124 (1a8) of Regulation (EU) No 575/2013 shall consider a margin of prudence when determining the loss expectation in accordance with paragraph 2 of this Article.
5. For the purposes of paragraph 1, the authorities designated in accordance with Article 124 (1a8) of Regulation (EU) No 575/2013 shall have regard to other macroprudential measures in force that already address the identified systemic risks affecting the appropriateness of the risk weights referred to in Article 124(29), first subparagraph, of that Regulation, including the following measures in national law designed to enhance the resilience of the financial system:
(a) loan-to-value (LTV) limits;
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Article 2 · Conditions to be taken into account for the assessment of the appropriateness of the LGD input floor values for retail exposures secured by immovable property
Article 2 Conditions to be taken into account for the assessment of the appropriateness of the minimum LGD input floor values for retail exposures secured by immovable property
1. When assessing the appropriateness of the minimum LGD input floor values in accordance with Article 164(6) of Regulation (EU) No 575/2013, the authorities designated in accordance with paragraph 5 of that Article shall, when performing the systemic risk assessment on the basis of macroeconomic imbalances affecting LGD estimates beyond the economic cycle, have regard to all of the following conditions:
(a) demand and supply conditions of real estate markets, and dynamics in real estate prices, including, where relevant and where a robust estimation is available, the degree of overvaluation or undervaluation of real estate prices;
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(a) whether the macroeconomic imbalances are related to an economic downturn and hence are considered in the downturn LGD estimation for the exposures concerned;
(b) other macroprudential measures in force that already address the identified systemic risks affecting the adequacy of minimumthe LGD input floor values, including the following measures in national law designed to enhance the resilience of the financial system:
(i) loan-to-value limits;
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Article 3 · Assessments for property segments or specific parts of the territory of a Member State
Article 3 Assessments for property segments or specific parts of the territory of a Member State An authority designated in accordance with Article 124(1a8) or Article 164(5) of Regulation (EU) No 575/2013 may consider the factors set out in Article 1 of this Regulation, or take into account the conditions set out in Article 2 of this Regulation, for one or more property segments or one or more parts of the territory of a Member State.
Article 4 · Use of other sources of data
Article 4 Use of other sources of data Authorities designated in accordance with Article 124(1a8) or Article 164(5), of Regulation (EU) No 575/2013 that determine the loss experience in accordance with Article 1(1), point (a), of this Regulation, or that assess the appropriateness of the minimum LGD input floor values in accordance with Article 2 of this Regulation for a property segment or a part of the territory of a Member State, may use other sources of data, including national ad- hoc reporting and credit registers relating to that segment or that part of the territory, provided that the data collected in accordance with Article 430(1), point (a), and Article 430a, of Regulation (EU) No 575/2013 are not sufficiently granular.