Regulatory Alerts2022-02-16
Added · Updated
Recommendation of the European Systemic Risk Board of 16 February 2022 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures
The General Board of the European Systemic Risk Board amends Recommendation ESRB/2015/2 to include specific national macroprudential measures in the list of measures recommended for voluntary reciprocation. The amendment adds measures from Belgium, France, Lithuania, Luxembourg, the Netherlands, Norway, and Sweden, detailing specific risk weight add-ons, systemic risk buffer rates, loan-to-value limits, and large exposure limits. Relevant authorities are recommended to reciprocate these measures to prevent negative cross-border effects such as regulatory arbitrage and leakages. The document specifies materiality thresholds, such as a EUR 2 billion exposure threshold for Belgium and combined thresholds for France, to guide the application of the de minimis principle.