On 16 April 2026, the European Commission (Commission) adopted a draft Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying what constitutes an equivalent legal mechanism that ensures that a residential property under construction is completed within a reasonable time frame.
The draft Commission Delegated Regulation is based on draft RTS submitted to the Commission by the European Banking Authority (EBA). On 26 February 2026, the EBA issued an opinion following the Commission’s amendments to the draft RTS.
The draft RTS specify the prudential conditions under which a legal mechanism can be considered equivalent, for the purpose of Article 124(3)(a)(iii)(2) of the CRR, to ensure that the property under construction is completed within a reasonable timeframe.
Next steps
The Council of the EU and the European Parliament will now scrutinise the Delegated Regulation.
If neither object, the Delegated Regulation will be published in the Official Journal of the European Union and enter into force on the twentieth day following its publication.