Reciprocation of the Norwegian systemic risk buffer

DNB reciprocates a Norwegian macroprudential measure imposing a 4.5% systemic risk buffer on exposures in Norway to prevent cross-border regulatory arbitrage. This requirement applies to Dutch credit institutions with relevant exposures through branches or direct cross-border links exceeding an institution-specific threshold of NOK 5 billion (EUR 458 million). The measure is applied under Article 133 of Directive 2013/36/EU and becomes binding once the exposure threshold is surpassed.

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Published: 01 June 2023

The ESRB has recommended the reciprocation of an extended macroprudential measure taken by the Norwegian Finansdepartementet. DNB intends to reciprocate this measure in order to prevent the materialization of negative cross-border effects in the form of leakages and regulatory arbitrage.

Details of the measure

The extended measure consists of a systemic risk buffer requirement with a 4,5% rate for exposures in Norway. The extended measure is subject to a lower materiality threshold compared to the initially introduced measure in 2021. The lower materiality threshold ensures avoiding potential leakages as well as regulatory arbitrage and thus preserves financial stability.

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Lineage: In force

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Source: De Nederlandsche Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works