Regulatory Alerts2025-07-09
Added · Updated
Recommendation of the European Systemic Risk Board of 9 July 2025 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2025/5)
The European Systemic Risk Board recommends that Member State authorities reciprocate two Swedish macroprudential measures: a 25% minimum exposure-weighted average risk-weight floor for retail mortgage exposures and a 35% floor for corporate exposures secured by commercial properties, alongside a 25% floor for corporate exposures secured by residential properties. These measures, originally set to expire in late 2025, are extended for two years or until systemic risks cease to exist, applying to credit institutions using the internal ratings-based approach. Reciprocation is required on an individual, sub-consolidated, and consolidated basis, with an institution-level materiality threshold of SEK 5 billion retained for exemptions. National authorities must implement these reciprocated measures no later than three months following the publication of this Recommendation in the Official Journal of the European Union.