Featured Product

    NBB Publishes Guidance for Banks and Insurers Offering Home Loans

    October 25, 2019

    NBB published prudential expectations for banks and insurers offering home loans and has set thresholds for a series of indicators to serve as benchmarks for granting a mortgage loan. The new expectations will come into force on January 01, 2020. NBB urged financial institutions to exercise more restraint in granting mortgage loans with very high loan-to-value ratios. It also urged institutions to take better account for household indebtedness and monthly repayment burden.

    The new expectations come on top of the measures that already apply for exposures to the real estate market. While the previous measures were designed to ensure the bank resilience, this latest initiative is geared more to encouraging banks and insurers to assume a more prudent lending policy. In the event of failure to comply with the expectations, the bank or the insurance company in question must be able to provide NBB with a reasoned explanation, in accordance with the comply or explain principle. 

    NBB had announced, on September 05, that it intended to establish new prudential expectations for Belgian banks and insurance companies that grant mortgage credit. This initiative from NBB follows on from an analysis it carried out that revealed a further increase in the vulnerability of the mortgage market in this country over the last few years and even in recent months. ESRB reached the same conclusion in a recent report on Belgium. Over the last few weeks, NBB has been holding a round of consultation on the subject for the financial sector.


    Related Link: News Release

     

    Keywords: Europe, Belgium, Banking, Insurance, LTV, Credit Risk, Residential Mortgage Lending, ESRB, NBB

    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    ESMA Consults on Guide to Internal Controls for Credit Rating Agencies

    ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs).

    December 05, 2019 WebPage Regulatory News
    News

    EU Finalizes Directive and Prudential Rules for Investment Firms

    EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms.

    December 05, 2019 WebPage Regulatory News
    News

    OSFI Revises Guideline on Principles for Management of Liquidity Risk

    OSFI finalized Guideline B-6 on the principles for the management of liquidity risk.

    December 05, 2019 WebPage Regulatory News
    News

    PRA Consults on Framework to Manage Outsourcing and Third-Party Risk

    PRA published a consultation paper CP30/19 that sets out proposals to modernize the regulatory framework on outsourcing and third-party risk management.

    December 05, 2019 WebPage Regulatory News
    News

    BoE, PRA, and FCA Consult to Strengthen Operational Resilience

    BoE, PRA, and FCA published a shared policy summary and coordinated consultation papers on new requirements to strengthen operational resilience in the financial services sector.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    OSFI Releases Guideline on Foreign Bank Branch Deposit Requirements

    OSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement.

    December 04, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4268