EBA Guidelines on ADC exposures to residential property under Article 126a of Regulation (EU) 575/2013 – applicable from 4 November 2025
On 27 June 2025, the European Banking Authority (EBA) issued Guidelines (EBA/GL/2025/03) on the acquisition, development and construction (ADC) exposures to residential property under Article 126a of Regulation (EU) No 575/2013 (Capital Requirements Regulation, CRR). The Financial Supervisory Authority (FIN-FSA) has confirmed that it will comply with the Guidelines.
In accordance with Article 16(3) of the EBA Regulation1, financial institutions must make every effort to comply with the EBA’s Guidelines.
Guidelines EBA/GL/2025/03 specify, in accordance with Article 126a(3) of the CRR, the following terms:
- “substantial cash deposits”
- “financing ensured in an equivalent manner”
- “appropriate amount of obligor-contributed equity” and
- “significant portion of total contracts”.
The Guidelines take into account the specificities of institutions’ lending to public housing or not-for-profit entities across the Union that are regulated by law and that exist to serve social purposes and to offer tenants long-term housing. The specifications have been made for the purposes of the application of Article 126a(2)(a) of the CRR.
The FIN-FSA’s interpretation of the prudential treatment of under-construction properties (RS properties) in line with Article 126a of the CRR and the EBA Guidelines will be published in the FIN-FSA Regulations and guidelines 5/2019 related to the Capital Requirements Regulation, which are currently being updated.
Date of application
The Guidelines will apply from 4 November 2025.
For further information, please contact
Torsten Groschup, Chief Specialist
tel. +358 9 183 5333, email: torsten.groschup(at)fiva.fi
Appendix
See also
Guidelines of the European Supervisory Authorities
1 Regulation (EU) No 1093/2010 establishing the EBA, Regulation (EU) No 1095/2010 establishing ESMA, Regulation (EU) No 1094/2010 establishing EIOPA.