Reciprocity

Measures to reciprocate

Overview of all buffer rates for application of the countercyclical buffer: BIS, ESRB

France — A tightening of the large exposure limit provided for in Article 395(1) of Regulation (EU) No 575/2013 to 5 percent of Tier 1 capital, to be applied by Belgian global systemically important institutions (G-SIIs) and other systemically important institutions (O-SIIs) - at the highest level of consolidation of their banking prudential perimeter - which have exposures, through their branches located in France or by exercising direct cross-border activities in France, to highly-indebted large non-financial corporations having their registered office in France. This measure is subject to a combined materiality threshold. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, an initial similar version of this measure  was applicable to Belgian credit institutions between 1 April 2019 and 30 June 2021. On 1st July 2021, French authorities have extended and strengthened this measure. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, the new version of this measure is applicable to Belgian credit institutions as from 7 November 2021.

Further information on the initial version of the French measure can be found here.

Lithuania —  a 2 % systemic risk buffer rate for all retail exposures to natural persons resident in the Republic of Lithuania that are secured by residential property : to be applied by Belgian credit institutions - at the highest level of consolidation of their banking prudential perimeter - having such exposures through their branches located in Lithuania or having such direct cross-border exposures in Lithuania, with application of a materiality threshold of EUR 50 million. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, this measure will be applied as from 1st July 2022.

Luxembourg — Loan-to-value (LTV) limits for new mortgage loans on residential real estate located in Luxembourg, with different LTV limits across categories of borrowers (more information). This measure is subject both to a country- and an institution-specific materiality threshold. The National Bank of Belgium, as macroprudential authority, recommends credit institutions and (re)insurers under Belgian law to apply the Luxembourgish measure as from 1 September 2021, provided both the country-specific threshold and the institution-specific threshold are reached. The country-specific materiality threshold is currently not reached (last update: August 2022).

Netherlands a minimum average risk weight applied by credit institutions using the IRB approach in relation to their portfolios of exposures to natural persons secured by residential property located in the Netherlands. For each individual exposure item that falls within the scope of the measure, a 12 % risk weight is assigned to a portion of the loan not exceeding 55 % of the market value of the property that serves to secure the loan, and a 45 % risk weight is assigned to the remaining portion of the loan. The minimum average risk weight of the portfolio is the exposure-weighted average of the risk weights of the individual loans. This measure shall be applied by Belgian credit institutions using the IRB approach having such exposures through their branches located in the Netherlands or having such direct cross-border exposures in the Netherlands, with application of a materiality threshold of EUR 5 billion. Loans covered by the Dutch National Mortgage Guarantee scheme are exempted from the measure and are also not calculated towards the materiality threshold. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, this measure will be applied as from 28 June 2022.

Further information on the Dutch measure can be found here.

Norway — Three measures:

  1. a 4.5% systemic risk buffer rate for exposures in Norway, applied in accordance with Article 133 of Directive 2013/36/EU. For credit institutions that do not use the advanced IRB approach, the systemic risk buffer rate applicable to exposures located in Norway is set at 3% until 31 December 2022; thereafter, the systemic risk buffer rate applicable to exposures located in Norway is set at 4.5%.
  2. a 20% average risk weight floor for residential real estate exposures in Norway, applied in accordance with Article 458(2)(d)(vi) of Regulation (EU) No 575/2013, to credit institutions, using the internal ratings-based (IRB) approach for calculating regulatory capital requirements; and
  3. a 35% average risk weight floor for commercial real estate exposures in Norway, applied in accordance with Article 458(2)(d)(vi) of Regulation (EU) No 575/2013, to credit institutions, using the internal ratings-based (IRB) approach for calculating regulatory capital requirements;

to be applied by Belgian credit institutions having such exposures through their branches located in Norway or having such direct cross-border exposures in Norway. For each of these three Norwegian measures, an institution-specific materiality threshold applies (more information). In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, these measures will be applicable as from 11 August 2021.

Sweden — A credit institution-specific floor of 25 per cent for the average risk-weight on retail exposures to obligors residing in Sweden secured by immovable property, applicable to credit institutions using the internal ratings-based (IRB) approach: to be applied by Belgian credit institutions having such exposures through their branches located in Sweden or having such direct cross-border exposures in Sweden, with application of a materiality threshold of SEK 5 billion. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, this measure will be applied as from 21 May 2019.

Expired measures

Finland — A credit institution-specific minimum level of 15 % for the average risk-weight on loans secured by a mortgage on housing units in Finland applicable to credit institutions using the internal ratings-based (IRB) approach: to be applied by Belgian credit institutions having such exposures through their branches located in Finland or having such direct cross-border exposures in Finland, with application of a materiality threshold of € 1 billion. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, this measure had been applied between 3 April 2018 and 31 December 2020.

Estonia — systemic risk buffer of 1 %: to be applied by Belgian credit institutions having exposures to the Estonian economy through their branches located in Estonia or having direct cross-border exposures in Estonia, with application of a materiality threshold of € 250 million. In accordance with Article 1, § 3 of the Regulation of the National Bank of Belgium of 24 February 2016 approved by Royal Decree on 20 May 2016, this measure had been applied between 21 May 2019 and 30 April 2020.