On 6 August 2025, the European Banking Authority (EBA) issued a final report containing draft Regulatory Technical Standards (RTS) on equivalent mechanism for unfinished property under Article 124(14) of the Capital Requirements Regulation (CRR).

The draft RTS aim to provide a harmonised framework at the EU level for the prudential treatment of residential real estate exposures under construction, ensuring comparability of own funds requirements and ultimately achieving a level playing field across the EU. 

The EBA previously issued a consultation paper on the draft RTS last year.

The draft RTS enter into force on the twentieth day following its publication in the Official Journal of the European Union.