NBB published a Royal Decree approving the regulation on additional own funds requirements for macro-prudential risk with regard to exposures covered by residential real estate in Belgium. The regulation has been introduced in line with Article 458 of the Capital Requirements Regulation or CRR (575/2013), which allows competent authorities to impose stricter measures to take account of changes in the intensity of macro-prudential risk and, in particular, to cope with additional risks in the residential real estate sector. The regulation states that, for property covered exposures to retail clients, the risk-weight for exposures calculated in accordance with Article 154 of the CRR has been increased. The regulation shall be in force from May 01, 2020 to April 30, 2021.
Related Link: Royal Decree (PDF in Dutch)
Effective Date: May 01, 2020
Keywords: Europe, Belgium, Banking, CRR, Systemic Risk, Macro-prudential Policy, Residential Real Estate, Regulatory Capital, EBA, NBB
Previous ArticleESMA Responds to EC Consultation on Review of Benchmarks Regulation
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.