Regulatory Alerts2024-09-27
Added · Updated
Recommendation of the European Systemic Risk Board of 27 September 2024 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2024/5)
ESRB/2024/5 amends Recommendation ESRB/2015/2 to recommend the reciprocation of Belgium's 6% systemic risk buffer on IRB retail exposures secured by residential real estate, effective from 1 April 2024. The recommendation requires competent authorities in other Member States to apply this buffer on an individual, sub-consolidated, and consolidated basis to limit regulatory arbitrage. It establishes an institution-specific materiality threshold of EUR 2 billion, below which institutions may be exempted from the requirement, with all exposures through branches, subsidiaries, and direct lending included in the assessment. Reciprocating authorities must adopt equivalent measures within three months of publication if the specific tool is unavailable in their jurisdiction.