Regulatory Alerts2018-01-08
Added · Updated
Recommendation of the European Systemic Risk Board of 8 January 2018 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2018/1)
The General Board of the European Systemic Risk Board amends Recommendation ESRB/2015/2 to include specific macroprudential measures from Estonia and Finland in the list of measures recommended for voluntary reciprocation. The Estonian measure consists of a 1-percent systemic risk buffer rate applied to domestic exposures of all credit institutions authorized in Estonia. The Finnish measure imposes a 15-percent floor on the average risk-weight for residential mortgage loans secured by housing units for credit institutions using the internal ratings-based approach, subject to a materiality threshold of EUR 1 billion. Relevant authorities in other Member States are recommended to reciprocate these measures for exposures located in Estonia and Finland, with specific deadlines and equivalent measure requirements outlined in the Annex.