A stable, well-functioning financial market for allA stable, well-functioning financial market for allEuropean Commission approves introduction of risk weight floors for bank loans to commercial real estate
The European Commission has announced that it does not intend to object to FI's intention to introduce risk weight floors for bank loans to commercial real estate. This means that FI may implement the measure.
On 12 May 2023, FI, through Article 458 of the Capital Requirements Regulation, informed the European Commission and the European Systemic Risk Board (ESRB) that the authority intends to introduce risk-weight floor of 35 per cent for corporate exposures secured by commercial real estate and 25 per cent for corporate exposures secured by residential real estate.
The European Commission has now decided not to propose to the European Council an implementing act that rejects the introduction. This means that the measure may be implemented in Sweden.
FI intends to make its final decision on the matter during September 2023.
