The Danish Financial Supervisory Authority (DFSA), the National Committee for Macroprudential Oversight in Romania, and the Central Bank of Cyprus notified EU authorities about the application of certain macro-prudential measures in their respective jurisdictions. DFSA notified EBA, ECB, and ESRB authorities about its decisions on the identification of other systemically important institutions (O-SIIs) in Denmark and the setting of O-SII buffers. The O-SII-buffer applies to the institution designated as O-SII and to each individual credit institution of the O-SII. The O-SIIs identified by DFSA are Danske Bank A/S, Nykredit Realkredit A/S, Nordea Kredit Realkreditaktieselskab, Jyske Bank A/S, Sydbank A/S, DLR Kredit A/S, and Spar Nord Bank A/S.
Additionally, the National Committee for Macroprudential Oversight in Romania notified EBA, ECB, and ESRB about its decision on the periodical recalibration of an existing systemic risk buffer in Romania. The level of the systemic risk buffer has been set at 0%, 1% or 2%, according to the 12-month average of the non-performing loans ratio and the coverage ratio, with provisions reported by each individual credit institution in accordance with the methodology established in the implementation process of the systemic risk buffer. The most recent revaluation was performed based on the 12-month average calculated for the asset quality assessment indicators (non-performing loans rate and coverage ratio) from July 2019 to June 2020, which is the basis of the capital requirement represented by the systemic risk buffer applicable between January 01 and June 30, 2021. Finally, the Central Bank of Cyprus notified ECB and ESRB about its decision to apply a stricter loan-to-value (LTV) limit of 50% on credit facilities granted to real estate developing companies for financing the acquisition or the construction of luxurious properties. For the purposes of this measure, luxurious properties are defined as properties with market value, or expected market value after the completion of construction, exceeding EUR 5.000 per square meter. The measure applies from March 19, 2021 and no phase-in arrangements were implemented.
- DFSA Notification (PDF)
- National Committee for Macroprudential Oversight Notification (PDF)
- Central Bank of Cyprus Notification (PDF)
Keywords: Europe, EU, Denmark, Romania, Cyprus, Banking, O-SII, Systemic Risk Buffer, Macro-Prudential Measures, LTV, Regulatory Capital, Credit Risk, Systemic Risk, DFSA, Basel, ECB, EBA, ESRB
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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