

ECB raised Pillar 2 charges for just three CRE-heavy banks in latest SREP
Pfandbriefbank and Luminor saw largest increases across 106 banks subject to 2023 assessment
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.
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