New regulation means a significant increase in capital costs for commercial real estate exposures.

In a new study conducted for the EMF-ECBC, we find that, following the EU implementation of the Final Basel III, capital requirements for European mortgage portfolios will increase by an average of 18% compared to the end of 2020. This corresponds to EUR 22 billion. Commercial real estate customers are by far the most affected customer group, experiencing an average increase in capital of 40%.   

Learn more about the topic here.

For further information, please get in touch with Jonas Bjarke Jensen, Managing Economist.