RegAlert2019-10-23 | NBB_2019_27Added
Expectations of the Belgian macroprudential authority on internal management of Belgian mortgage credit standards
The National Bank of Belgium establishes explicit expectations for the internal management of mortgage credit standards applied by banks and insurance undertakings operating on the Belgian residential property market, effective 1 January 2020. These expectations target the proportion of loans with loan-to-value ratios above defined thresholds for sub-segments such as buy-to-let and owner-occupied loans, including specific limits for high loan-to-value ratios combined with high debt service ratios. Selected institutions with outstanding Belgian mortgage loans exceeding 1 billion euro must submit annual compliance reports approved by their Executive Board and Board of Directors, with the first report covering production from 1 July 2020 to 31 December 2020 due by 30 April 2021. Institutions must explain any non-compliance under a "comply or explain" principle, utilizing tolerance margins and flexibility to account for borrower profiles.
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NBB_2019_27 - 23 October 2019 Circular - Page 1 boulevard de Berlaimont 14 – BE-1000 Brussels Phone +32 2 221 38 12 – fax + 32 2 221 31 04 Company number: 0203.201.340 RPM (Trade Register) Brussels www.nbb.be Circular Brussels, 23 October 2019 Reference: NBB_2019_27 Contact persons:
Hans Dewachter / Alexandre Francart
Phones : +32 2 221 56 19 / +32 2 221 52 09
Hans.Dewachter@nbb.be / Alexandre.Francart@nbb.be Expectations of the Belgian macroprudential authority on internal management of Belgian mortgage credit standards as applied by banks and insurance undertakings operating on the Belgian residential property market Scope
- Credit institutions governed by Belgian law
- Branches established in Belgium of credit institutions governed by the law of EEA Member
States - Branches established in Belgium of credit institutions governed by the law of states that
are not members of the EEA - Insurance or reinsurance undertakings governed by Belgian law
- Branches established in Belgium of insurance or reinsurance undertakings governed by
the law of EEA Member States
Summary/Objectives
This Circular details the explicit expectations of the National Bank of Belgium (NBB), acting as macroprudential authority, on internal management of Belgian mortgage credit standards as applied by banks and insurance undertakings operating on the Belgian residential property market. Structure
- Motivation of the expectations
- Overview of the expectations
- Implementation and monitoring procedures
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Lineage: In force
Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works