ESRB Real Estate Report Gaps

On Aug. 13, ESRB issued recommendation on real estate data.

  • ESRB Recommendation of Mar. 2019 on closing real estate data gaps was published.
  • Follows ESRB Nov. 2016 reports on macro and housing vulnerability, see #30016.
  • Overview
  • New recommendation amends 2016 original on same topic, includes new deadlines.
  • They will provide national macroprudential authorities more time to fix practical issues.
  • Extension of deadlines would not jeopardize correct operation of financial markets.
  • Further technical guidance and work on target definitions/indicators may be required re specificities of markets or market segments to ensure statistical quality of data.
  • Recommendation 2016
  • Implementation of framework for monitoring developments in real estate sector for financial stability purposes requires regular collection/distribution of data at EU level.
  • For comparable country data so real estate-related risks across MS can be accurately assessed, use of macroprudential policy instruments compared, address vulnerability.
  • Recommendation ESRB/2016/14 (Recommendation 2016) aimed to harmonize definitions/indicators used to monitor residential (RRE), commercial real estate (CRE).
  • To address existing gaps in data availability/comparability on RRE/CRE markets in EU.
  • Recommendation 2016 requests addressees to report to ESRB and EU Council actions undertaken in response to it or justify inaction in compliance within timelines set.
  • Addressees made progress towards implementation, some national macroprudential authorities work was delayed by practical issues, need to establish reporting structure.
  • Other practical issues include identification of data sources, data confidentiality issues.
  • To ensure implementation of Recommendation 2016, necessary to extend deadlines.
  • 2019 Recommendation
  • Recommendations C, D are amended, with new definitions and indicators for RRE/CRE.
  • Indicators recommended for monitoring risks from CRE market, indicators on physical CRE market, financial sector credit exposures, monitor risks by property type/location.
  • New recommendation F on common minimum framework for physical CRE market.
  • New deadlines for interim and final reports to ESRB set for all recommendations.
  • New Deadlines and Annexes
  • As regards interim reports to be submitted to ESRB/EU Council date is Dec. 31, 2019.
  • As for final reports, those are to be submitted to same authorities by Dec. 31, 2020.
  • For Recommendation C, final report is due on Dec. 31, 2021 instead of Dec. 31, 2020.
  • For Recommendation F, interim report by Dec. 31, 2021, final due on Dec. 31, 2023.
  • Re Recommendation E, all deadlines mentioned are in the past i.e. 2017 up to 2019.
  • Where national authorities do not have relevant information re specific indicators in Recommendations C, D they are requested to deliver final report on implementation of those indicators at the latest by Dec. 31, 2025, annexes I to V have been replaced.

Regulators EU ESRB
Entity Types Auditor; Bank; Corp; MG Orig; Servicer; SIFI
Reference OG, ESRB/2019/3, C 271, 8/13/2019; ESRB/2016/14
Functions Accounting; Financial; Reporting; Risk; Treasury
Countries European Union
Products Banking; Corporate; Loan; Mortgage
Regions EMEA
Rule Type Final
Rule Date 8/14/2019
Effective Date 12/31/2019
Rule Id 63850
Linked to Rule :30016
Report Issue 8/15/2019
Report Section EU

Last substantive update on 08/14/2019