Featured Product

    DNB Proposes Risk-Weight Add-On for RRE Mortgage Loans

    December 12, 2018

    DNB proposed to apply a risk-weight add-on to the portfolio of mortgage loans secured by residential real estate (RRE) located in Belgium. ESRB had recommended reciprocation of this macro-prudential measure by the National Bank of Belgium. DNB intends to reciprocate this measure, with the aim of contributing to effective macro-prudential policy. Banks can respond until January 12, 2019.

    The measure applies to retail exposures secured by immovable property for which the collateral (immovable property) is situated in Belgium and to the Dutch credit institutions using the internal ratings based (IRB) approach. The measure focuses on IRB banks as their model-implied risk-weights are relatively low, compared to those implied by the standardized approach. The reciprocated measure will apply to the exposures, if they are exposures or branches of Dutch credit institutions or cross-border exposures to Belgium. 

    The add-on consists of two elements. The first element consists of a general risk-weight add-on of five percentage points for IRB banks’ retail exposures while the second element determines the size of the (second) additional macro-prudential risk-weight add-on as a fraction (33%) of the micro-prudential risk-weight on the (residential) mortgage portfolio. An institution-specific threshold of EUR 2 billion applies. Credit institutions do not have to apply the add-on, if their exposures in scope of the measure are below this threshold. The Belgian measure is applied under Article 458 (2) (d) (vi) or the Capital Requirements Regulation (CRR).

     

    Related Link (in Dutch)

    Keywords: Europe, EU, Netherlands, Belgium, Banking, CRR, IRB Approach, Risk Weight Add-on, Residential Mortgage Loans, RRE, NBB, ESRB, DNB

    Related Articles
    News

    SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

    SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

    August 22, 2019 WebPage Regulatory News
    News

    ECB Revises Prudential Provisioning Expectations for New NPEs

    ECB is revising its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (Addendum)

    August 22, 2019 WebPage Regulatory News
    News

    CFTC Proposes to Revise Information Collection on Margin Requirements

    CFTC is requesting comments on the burdens associated with certain aspects of the Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (final rule).

    August 21, 2019 WebPage Regulatory News
    News

    FASB to Delay Effective Date for Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting.

    August 21, 2019 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.9

    EBA published phase 2 of its technical package on the reporting framework 2.9, which includes validation rules, Data Point Model (DPM) data dictionary, and XBRL taxonomies.

    August 21, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Its Consultation Related to SME Financing

    FSB published responses received to the consultation on a report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing.

    August 21, 2019 WebPage Regulatory News
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    EBA and ESMA Issue Joint Response to EC Letter on Crypto-Assets

    EBA and ESMA issued a joint response to the EC letter, from July 19, 2019, on crypto-assets.

    August 20, 2019 WebPage Regulatory News
    News

    FSB on Responses to Consultation on Wind-Down of Trading Portfolios

    FSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).

    August 19, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Consultation on Resolvability Disclosures

    FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.

    August 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3681