Added · Updated
The European Banking Authority issued an opinion on Norway’s proposal to increase the exposure-weighted average risk weight floor for residential real estate exposures from 20% to 25% effective July 2025. The EBA does not object to the measure, acknowledging the systemic risks posed by high household debt and financial imbalances, while noting that alternative macroprudential tools are less suitable for institutions using the Internal Ratings Based approach. The Authority urges Norwegian authorities to monitor potential overlaps with the Systemic Risk Buffer and the output floor, and to remain ready to adjust the calibration if the intensity of systemic risks changes.
More like this from EBA
EBA published 2 documents in the last 30 days. We email you each new one the day it's published.