ESRB Amends Recommendation Related to Macro-Prudential Policy Measures
ESRB published the Recommendation ESRB/2019/1, which amends Recommendation ESRB/2015/2 on the assessment of cross-border effects of, and voluntary reciprocity for, macro-prudential policy measures. To ensure effective and consistent national macro-prudential policy measures, it is important to complement the mandatory reciprocity required under Union law with voluntary reciprocity. The framework on voluntary reciprocity for macro-prudential policy measures set out in Recommendation ESRB/2015/2 aims to ensure that all exposure-based macro-prudential policy measures activated in one member state are reciprocated in the other member states.
In April 2018, in accordance with Article 133(10)(b) of Capital Requirements Directive (CRD IV: Directive 2013/36/EU), Bank of Estonia reviewed the systemic risk buffer and reset the systemic risk buffer rate applicable to the domestic exposures of all credit institutions authorized in Estonia at 1%. Following the request by Bank of Estonia to ESRB, the General Board of ESRB has decided to recommend a maximum materiality threshold of EUR 250 million of exposures located in Estonia to steer the application of the de minimis principle by the reciprocating member state to the reciprocation of the 1% systemic risk buffer set by Estonia, which was recommended for reciprocation by ESRB pursuant to Recommendation ESRB/2016/4.
Furthermore, from December 31, 2018, credit institutions authorized in Sweden and using the Internal Ratings Based Approach for calculating regulatory capital requirements are subject to a credit institution-specific floor of 25% for the exposure-weighted average of the risk-weights applied to the portfolio of retail exposures to obligors residing in Sweden secured by immovable property. Following the request by Financial Supervisory Authority in Sweden (Finansinspektionen) to ESRB, the General Board of ESRB has decided to include this measure in the list of macro-prudential policy measures that are recommended to be reciprocated under Recommendation ESRB/2015/2. The General Board of ESRB has also decided to recommend a maximum materiality threshold of SEK 5 billion of exposures to obligors residing in Sweden secured by immovable property to steer the application of the de minimis principle by the reciprocating member state. Therefore, Recommendation ESRB/2015/2 has been amended as follows:
- In Section 1, sub-recommendation C(1) has been replaced.
- Annex to Recommendation ESRB/2015/2 has been replaced by Annex to Recommendation ESRB/2019/1.
Related Links
Keywords: Europe, EU, Sweden, Estonia, Banking, Macro-Prudential Policy Measures, ESRB/2019/1, ESRB/2015/2, Voluntary Reciprocity, Systemic Risk Buffer, CRD IV, ESRB
Previous Article
APRA Releases Results of Climate Risk Survey on Regulated EntitiesRelated Articles
|
News
APRA Releases Minor Changes to Reporting Standards on SA-CCR for BanksAPRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).
May 22, 2019
WebPage
Regulatory News
|
|
News
APRA Proposes to Amend Guidance on Residential Mortgage LendingAPRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.
May 21, 2019
WebPage
Regulatory News
|
|
News
ESAs Amend Technical Standards on Mapping of ECAIs Under CRRESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).
May 20, 2019
WebPage
Regulatory News
|
|
News
OCC Consults on Information Collection for Home Mortgage DisclosuresOCC is soliciting comment on the revision of the information collection titled “Regulation C—Home Mortgage Disclosure.” OCC also notes that it has sent the collection to OMB for review.
May 20, 2019
WebPage
Regulatory News
|
|
News
EIOPA Updates Q&A on Regulations in May 2019EIOPA published additional questions and answers (Q&A) on guidelines, directives, and regulations applicable to insurers in Europe.
May 17, 2019
WebPage
Regulatory News
|
|
News
FSB Publishes Update on Meeting of RCG for AmericasFSB published a summary of the meeting of its Regional Consultative Group (RCG) in Americas.
May 17, 2019
WebPage
Regulatory News
|
|
News
ESRB Paper on Impact of Business Model Similarities on Risk CaptureESRB published a working paper on whether information contagion and business model similarities explain bank credit risk commonalities.
May 17, 2019
WebPage
Regulatory News
|
|
News
CBM Notifies ESRB and ECB on Imposing Borrower-Based Measures in MaltaCBM notified ESRB and ECB regarding its decision to impose borrower-based measures on lenders in Malta.
May 17, 2019
WebPage
Regulatory News
|
|
News
IASB Issues Work Plan and Meeting Updates for May 2019IASB published an updated work plan, along with the update of its meeting in May 2019.
May 17, 2019
WebPage
Regulatory News
|
|
News
FCA Publishes Its Business Plan for the Coming YearFCA published its Business Plan, which sets out the main areas of focus and priorities for 2019/20.
May 17, 2019
WebPage
Regulatory News
|
