Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319064 
Year of Publication: 
2025
Series/Report no.: 
SAFE White Paper No. 111
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
The European financial system faces significant risks from excessive bank lending to the real estate sector. Historical trends show a strong link between real estate credit booms and banking crises. Current data indicate that real estate loans constitute a substantial share of banks' corporate loan portfolios, with varying risk levels across countries. Key drivers include expansionary ECB policies and regulatory incentives favouring mortgage lending. Strengthening oversight, improving data collection, and adjusting regulations are essential for financial stability. This document was provided/prepared by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.
Subjects: 
Real Estate Landing
Banking Crisis
Financial Stability
Document Type: 
Working Paper

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