Reciprocity of macroprudential measures

Finland

Starting with 1 January 2018, the Finnish authorities have implemented a macroprudential measure setting a 15 percent floor for the average risk weight on residential mortgage loans secured by housing units in Finland, applied by banks using the internal ratings-based approach (IRB) to credit risk. Through Recommendation ESRB/2018/1, published on 3 February 2018, the European Systemic Risk Board (ESRB) recommended the relevant authorities of EU Member States to reciprocate the Finnish measure.

The National Committee for Macroprudential Oversight decided not to reciprocate the macroprudential measure adopted by Finland, as no credit institution in Romania has exposures in the form of residential mortgage loans secured by housing units in Finland. This type of exposures will be periodically monitored and the National Bank of Romania will propose the necessary measures should these exposures become material.

Belgium

On 21 September 2018, the ESRB published Recommendation ESRB/2018/5 recommending to the relevant Member States’ authorities to reciprocate the macroprudential measure adopted by Belgium in 2018. The measure consists of a risk-weight add-on for retail exposures secured by residential immovable property located in Belgium, applied in accordance with Article 458(2)(d)(vi) of Regulation (EU) No 575/2013 to credit institutions authorized in Belgium, using the IRB approach for calculating regulatory capital requirements. The add-on is composed of (i) a flat risk-weight add-on of 5 percentage points and (ii) a proportionate risk-weight add-on consisting of 33 per cent of the exposure-weighted average of the risk-weights applied to the portfolio of retail exposures secured by residential immovable property located in Belgium. The measure is complemented by an institution-specific materiality threshold of EUR 2 billion.

The National Committee for Macroprudential Oversight decided not to reciprocate the macroprudential measure adopted by Belgium, as eligible exposures of the Romanian banking sector to Belgium are insignificant. This type of exposures will be periodically monitored and the National Bank of Romania will propose the necessary measures should these exposures become material.