Instruction No. 2016-I-24 of December 1, 2016 on the collection of information on exposures to Belgian residential real estate arising from free provision of services

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2016-I-24 on the collection of information on exposures to Belgian residential real estate arising from the free provision of services

The Prudential Control and Resolution Authority, Having regard to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, in particular Article 458 thereof; Having regard to the Monetary and Financial Code, in particular Article L. 612-24 thereof; Having regard to the notification from the National Bank of Belgium addressed to the European Systemic Risk Board on January 21, 2016; Having regard to Recommendation ESRB/2015/2 as amended of the European Systemic Risk Board of December 15, 2015 on the assessment of cross-border effects and voluntary reciprocity of macroprudential policy measures; Having regard to Decision No. D-HCSF-2016-1 of the High Council for Financial Stability of March 15, 2016 on the reciprocity of the risk overweighting measure regarding exposures to Belgian residential real estate adopted by the National Bank of Belgium; Having regard to the opinion of the Prudential Affairs Consultative Committee of November 16, 2016, Decides:

Article 1 For the purposes of this Instruction, the undertakings subject to it are: 1° Parent institutions in a Member State as defined in point 28) of paragraph 1 of Article 4 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 mentioned above; 2° Parent financial holding companies in a Member State as defined in point 30) of paragraph 1 of Article 4 of the same Regulation; 3° Parent mixed financial holding companies in a Member State as defined in point 32) of paragraph 1 of Article 4 of the same Regulation; 4° Parent undertakings of a finance company as defined in Article L. 517-1 of the Monetary and Financial Code that are not subsidiaries of an entity mentioned in points 1° to 5°; 5° Credit institutions, investment firms as defined in Article L. 533-2-1 of the Monetary and Financial Code, and finance companies that are not subsidiaries of an entity mentioned in points 1° to 4°.

The undertakings subject to it mentioned in point 5° that use the internal ratings-based approach ("IRB approach") shall transmit to the General Secretariat of the Prudential Control and Resolution Authority the amount of their mortgage loans and secured loans on residential real estate, as defined in point 75) of paragraph 1 of Article 4 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 mentioned above, located in Belgium.

The undertakings subject to it mentioned in points 1° to 4° shall transmit to the General Secretariat of the Prudential Control and Resolution Authority the sum of all mortgage loans and secured loans on residential real estate located in Belgium, taken by credit institutions, investment firms as defined in Article L. 533-2-1 of the Monetary and Financial Code, and finance companies established on French territory within the group, when these entities use the IRB approach.

Article 2: The loans mentioned in Article 1 are those taken through a branch established in Belgium, via the free provision of services, or outside the framework provided for the mutual recognition of authorizations. They are communicated using the submission form in Excel format provided in the Annex by the General Secretariat of the Prudential Control and Resolution Authority.

This submission form (the content of which is reproduced in the Annex to this Instruction) is transmitted annually, before June 30, to the following email address: COLLECTE-RECIPROCITE@acpr.banque-france.fr.

The data collected concerns the loan amounts as of December 31 of the previous year.

Article 3: By way of derogation from Articles 1 and 2, undertakings subject to it are exempt from transmitting the submission form when the amount of mortgage loans and secured loans on residential real estate located in Belgium that they have granted using the IRB approach via the free provision of services is less than one billion euros.

Article 4: By way of derogation from the second and third paragraphs of Article 2, for information transmissions for the year 2016, the undertakings subject to it mentioned in the seventh and eighth paragraphs of Article 1 shall submit, no later than June 30, 2017, two submission forms covering respectively the loan amounts as of June 30, 2016, and December 31, 2016.

Article 5: This Instruction enters into force upon its publication.

Paris, December 1, 2016 The President of the Prudential Control and Resolution Authority, [François VILLEROY de GALHAU]

3 Annex to Instruction No. 2016-I-24 Submission Form Group Name CIB (1) Date of submission of the form DD/MM/YYYY Reference date of the data communicated DD/MM/YYYY

Note 1: For undertakings subject to it mentioned in points 1° to 4° of Article 1 of this Instruction, the CIB corresponds to that communicated during the declaration of the prudential consolidation perimeter to the ACPR.

Mortgage loans and secured loans (2) on residential real estate located in Belgium and weighted according to the IRB approach

Categories Amount (EUR) A Mortgage loans and secured loans held by credit institutions, investment firms, and finance companies established in France (excluding direct loans held under the free provision of services, or "FPS") B Mortgage loans and secured loans held by branches established in Belgium (excluding direct loans held under FPS) C Direct mortgage loans and secured loans held under the free provision of services Total of mortgage loans and secured loans on residential real estate located in Belgium and weighted according to the IRB approach (A+B+C) Mortgage loans and secured loans on residential real estate located in Belgium and weighted according to the IRB approach (line 070 of the COREP declaration CR GB2, country: Belgium)

Note 2: "Loan" is defined as the initial exposure before the application of conversion factors.

NB: all cells in the right column of the table above must be filled in. Each cell must contain a loan amount denominated in EUR (without decimals).