Regulatory Alerts2021-03-24
Added · Updated
Recommendation of the European Systemic Risk Board of 24 March 2021 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2021/2)
The European Systemic Risk Board amends Recommendation ESRB/2015/2 to recommend the reciprocation of specific macroprudential measures from Belgium, France, Luxembourg, and Sweden. Reciprocating authorities are advised to apply Belgian risk-weight add-ons, French large exposure limits for highly-indebted corporations, Luxembourgish loan-to-value caps, and Swedish risk-weight floors to relevant financial institutions within their jurisdictions. The amendment establishes institution-specific and country-specific materiality thresholds, such as a EUR 2 billion exposure limit for Belgian measures and combined thresholds for French exposures, to guide the application of the de minimis principle. Equivalent measures must be adopted within four to six months if identical national legislation is unavailable.