ECB’s concerns with real estate risk - Implications for banks

In its supervisory priorities for 2022-2024 the ECB is keen on pointing out several potential vulnerabilities regarding banks’ exposure towards the real estate sector. The commercial real estate (CRE) sector is facing major challenges because of the global pandemic while there are growing concerns about a bubble in the residential real estate (RRE) sector across the European countries.
In this alert you will read more about potential risks from commercial and residential real estate, and about next steps.