Regulatory Alerts2018-12-05
Added · Updated
Recommendation of the European Systemic Risk Board of 5 December 2018 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2018/8)
The European Systemic Risk Board amends Recommendation ESRB/2015/2 to update the list of macroprudential measures recommended for voluntary reciprocity, adding a French large exposure limit of 5 per cent of eligible capital for exposures to highly-indebted large non-financial corporations. The amendment also specifies reciprocation details and materiality thresholds for existing measures in Estonia (1 per cent systemic risk buffer), Finland (15 per cent risk-weight floor with a EUR 1 billion threshold), and Belgium (risk-weight add-on with a EUR 2 billion threshold). Relevant authorities are recommended to apply these measures to credit institutions and systemically important institutions within their jurisdictions, subject to the specified thresholds and deadlines.