The article discusses the importance of real estate market risk for banks and how it has been overlooked in research and practice. It identifies different types of real estate market risk and shows that banks are exposed to this risk through various means. Empirical studies confirm that German banks are significantly affected by real estate market fluctuations. Most banks are not equipped to manage this risk effectively, highlighting the need for new risk management tools. The author suggests using instruments like a geographical information system and sensitivity analysis to measure and protect against real estate market risk.