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/2025/6)
The ESRB amends Recommendation ESRB/2015/2 to recommend that EEA authorities reciprocate Norwegian macroprudential measures, specifically a 25% risk-weight floor for residential real estate exposures effective from 1 July 2025 and a 35% floor for commercial real estate exposures. These measures apply to credit institutions using the internal ratings-based approach and must be implemented on an individual, sub-consolidated, and consolidated basis to prevent regulatory arbitrage. Materiality thresholds for reciprocation are set at NOK 37.8 billion for residential and NOK 9.3 billion for commercial real estate lending, corresponding to 1% of gross lending as of 30 September 2024. A standard three-month transition period applies to national authorities adopting these reciprocation measures following the publication of this Recommendation.