March 1, 2024 (NO COMMENTS)

The European Central Bank raised the Pillar 2 requirements (P2Rs) of just three banks with significant commercial real estate (CRE) loans as part of its latest Supervisory Review and Evaluation Process (SREP), Risk Quantum research has found. Across a sample of 18 lenders with CRE exposures making up at least 15% of their loan portfolios as of June 2023, only Deutsche Pfandbriefbank, Luminor Holding and Landesbank Baden-Württemberg (LBBW) were handed higher P2Rs in the December 2023 assessment.