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.

For more information please contact:

Gonzalo Gasos, Senior Director – Prudential Policy and Supervision, g.gasos@ebf.eu

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About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.