Regulatory reduction of real estate financing by banks

Abstract

The recent financial crisis revealed an important link between the stability
of the banking system and real estate lending. An aim of the article is to
present tools in the field of banking supervision as the factors that may limit
the supply of such loans. The research covered only instruments introduced
to the EU legislation through the CRDIV/CRR package; then, the method
of comparative analysis has been applied to show the scope of implementation
thereof in individual EEA states. The obtained results allow stating
that supervisory measures undertaken in relation to capital requirements are

characterised by significant flexibility. However, a relatively limited number
of countries have decided to use them because of their potential side effects.