On 5 October 2022, the European Commission published a draft Delegated Regulation supplementing the Capital Requirements Regulation with regard to regulatory technical standards (RTS) specifying the types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable property and the conditions to be taken into account for the assessment of the appropriateness of minimum loss given default values for exposures secured by immovable property.

The draft Delegated Regulation specifies for institutions applying the Standardised Approach the types of factors to be considered during the appropriateness assessment of risk weights on the basis of the loss experience and forward-looking immovable property market developments and provides for institutions applying the Internal Ratings Based Approach to retail exposures secured by residential or commercial immovable property the conditions to be considered when assessing the appropriateness of minimum loss given default values.

The Delegated Regulation enters into force on the twentieth day following its publication in the Official Journal of the EU.