Real Estate and the Real Impact of the European Financial Regulation

JOINT LETTER
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Real Estate and the Real Impact of the European Financial Regulation

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Brussels, 26 February 2026 - The European Banking Federation (EBF), together with representatives of the European mortgage, real estate and banking sectors, have sent and published a joint letter to the European Commission on the sheer impact of European financial regulation on real estate lending.

Against the backdrop of growing housing affordability challenges across the EU, the statement highlights how evolving prudential requirements, including the implementation of CRR3 and the output floor, may significantly increase capital requirements for low-risk residential real estate exposures and reduce banks' lending capacity.

The signatories call on the European Commission to preserve and make permanent the transitional provisions under Article 465(5) CRR, extend them to banks using the Standardised Approach in line with the low-risk criteria, and assess the broader impact of prudential rules.

The full joint statement is available below.