(Only in Italian)
IVASS has ordered to be blacked out the following websites:

EBA has launched a public consultation on its draft Guidelines under the Capital Requirements Regulation (CRR3) regarding acquisition, development and construction (ADC) exposures to residential property

These Guidelines specify the credit risk-mitigating conditions that allow institutions to assign a risk weight of 100% instead of 150% for ADC exposures to residential property.

Furthermore, the Guidelines also address the specificities of institutions’ lending to public housing or not-for profit entities.

The Guidelines specify further the two conditions introduced in the CRR3 for ADC exposures to residential property to benefit from a risk weight of 100% instead of 150%:

  • 50% of pre-sale and pre-lease contracts with respectively a cash deposit equal to or higher than 10% of the sale price and equal to or higher than 3 times the monthly lease rate, or sale and lease contracts.
  • The obligor has substantial equity at risk, represented as an appropriate amount of obligor-contributed equity representing 35% of the residential property value upon completion.

The consultation will end on 19 August 2024.