Real Estate
Decisions
The Bank has taken various measures concerning the financial sector's exposures to the Belgian residential real estate market. These are aimed both at ensuring the resilience of the sector and at encouraging a more prudent credit policy.
On the one hand, the Bank introduced a macroprudential measure (based on Article 458 of the CRR) targeting exposures to the Belgian residential real estate market of credit institutions applying the internal ratings-based (IRB) approach. The measure has been introduced on 30 April 2018 for an initial period of two years. The measure was extended for a first time in 2020 for one year and for a second time in 2021 for an additional year and runs till April 30th 2022 or until the moment the NBB as macroprudential authority would decide to deactivate the measure. This measure imposes an increase in the risk weights of targeted residential real estate exposures, in order to increase the banking sector’s resilience and to discourage banks from taking excessive risks in the Belgian residential real estate market.
Further information on this measure pdf
On the other hand, the Bank sets prudential expectations for banks and insurance companies that grant mortgage loans in Belgium. Banks and insurance companies are encouraged to be more cautious in granting mortgage loans with very high loan-to-value ratios, and to take greater account of households' debt and monthly repayment burden.
Further information on the prudential expectations pdf
FAQ prudential expectations (French)