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.
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.
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.