Royal Decree of 25 April 2014 approving the National Bank of Belgium Regulation of 16 April 2014 on the own funds of credit institutions and investment firms

FEDERAL PUBLIC SERVICE FINANCES [C − 2014/03190] 25 APRIL 2014. — Royal Decree approving the regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms

PHILIP, King of the Belgians, To all whom these presents shall come, Greeting.

Having regard to the Act of 25 April 2014 on the status and supervision of credit institutions, Article 98; Having regard to the Act of 6 April 1995 on the status and supervision of investment firms, Article 90; Having regard to the Act of 22 February 1998 laying down the organic statute of the National Bank of Belgium; Article 12bis, § 2; Having regard to Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012; On the proposal of the Minister of Finance, Have decided and do decide:

Article 1. The regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms, attached to this Decree, is approved.

Art. 2. This Decree shall enter into force:

• after the one-month period referred to in Article 458, paragraph 4, fourth subparagraph of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, during which the Commission has not formulated a proposal contrary to the measures of the regulation of the National Bank of Belgium referred to in Article 1; or
• on the date on which those measures are approved by the Council, applying Article 458, paragraph 4, fifth subparagraph of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.

Art. 3. The Minister responsible for Finance is charged with the execution of this Decree. Given at Brussels, 25 April 2014.

PHILIP By the King: Minister of Finance, K. GEENS

Appendix to the Royal Decree approving the regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms

The National Bank of Belgium, Having regard to the Act of 25 April 2014 on the status and supervision of credit institutions, Article 98; Having regard to the Act of 6 April 1995 on the status and supervision of investment firms, Article 90; Having regard to the Act of 22 February 1998 laying down the organic statute of the National Bank of Belgium, Article 12bis, § 2; Whereas the supplementary requirement provided for in the regulation of 22 October 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms, which concerns exposures secured by mortgages on residential buildings in Belgium, remains justified, given the importance of those exposures and the need to ensure that those institutions have sufficient own funds to cover the risk associated with those exposures;

Whereas the regulation of 22 October 2014 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms is no longer applicable, due to the entry into force, on 1 January 2014, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012;

Whereas Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 enables competent authorities to impose stricter measures regarding own funds in order to take into account the changed intensity of systemic risk and, more specifically, to address additional risks in the residential real estate sector,

Decides:

Article 1. The provisions of this regulation shall apply to: 1° credit institutions referred to in Book II and Book III, Title II of the Act of 25 April 2014 on the status and supervision of credit institutions; 2° investment firms within the meaning of Article 44, first paragraph, and referred to in Title II of Book II of the Act of 6 April 1995 on the status and supervision of investment firms, insofar as they have obtained authorization as an investment firm; 3° branches established in Belgium of investment firms subject to the law of States that are not members of the European Economic Area, referred to in Book II, Title IV of the Act of 6 April 1995 on the status and supervision of investment firms, which have obtained authorization as an investment firm.

Art. 2. § 1. In application of Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, the institutions referred to in Article 1 shall take into account paragraph 2 for determining the risk weighting of exposures to retail clients referred to in Article 154, paragraph 3, of that Regulation.

§ 2. For exposures secured by a residential real estate property in Belgium, the result of the risk weighting shall be calculated in accordance with the aforementioned Article 154, paragraph 3, increased by the following amount: 0.05.

Art. 3. This regulation shall enter into force on the date of entry into force of the Royal Decree approving it. Brussels, 16 April 2014. The Governor, L. COENE

Approved to be attached to Our Decree of 25 April 2014 approving the regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms.

PHILIP By the King: Minister of Finance, K. GEENS

SERVICE PUBLIC FEDERAL FINANCES [C − 2014/03190] 25 APRIL 2014 — Royal Decree approving the regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms

PHILIPPE, King of the Belgians, To all, present and future, Greeting.

Having regard to the Act of 25 April 2014 on the status and supervision of credit institutions, Article 98; Having regard to the Act of 6 April 1995 on the status and supervision of investment firms, Article 90; Having regard to the Act of 22 February 1998 laying down the organic statute of the National Bank of Belgium; Article 12bis, § 2; Having regard to Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012; On the proposal of the Minister of Finance, We have decided and do decide:

Article 1. The regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms, annexed to this Decree, is approved.

Art. 2. This Decree shall enter into force:

• at the end of the one-month period referred to in Article 458, paragraph 4, fourth subparagraph of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012, at the end of which the Commission has not formulated a proposal contrary to the measures subject to the regulation of the National Bank of Belgium referred to in Article 1; or
• on the date of approval of those measures by the Council, in application of Article 458, paragraph 4, fifth subparagraph of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012.

Art. 3. The Minister who has Finance in his attributions is charged with the execution of this Decree. Given at Brussels, 25 April 2014.

PHILIPPE By the King: Minister of Finance, K. GEENS

Annex to the Royal Decree approving the regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms

The National Bank of Belgium, Having regard to the Act of 25 April 2014 on the status and supervision of credit institutions, Article 98; Having regard to the Act of 6 April 1995 on the status and supervision of investment firms, Article 90; Having regard to the Act of 22 February 1998 laying down the organic statute of the National Bank of Belgium, Article 12bis, § 2; Whereas the supplementary requirement provided for in the regulation of 22 October 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms and concerning exposures secured by mortgages on residential real estate in Belgium remains justified in view of the importance of these exposures and the necessity to ensure that these institutions have sufficient own funds to cover the risk linked to these exposures;

Whereas the regulation of 22 October 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms is no longer applicable due to the entry into force, on 1 January 2014, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012;

Whereas Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012 allows competent authorities to impose stricter measures regarding own funds to take into account a variation in the intensity of systemic risk and more particularly to address additional risks in the residential real estate sector,

Decides:

Article 1. The provisions of this regulation shall apply to: 1° credit institutions referred to in Book II and Book III, Title II of the Act of 25 April 2014 on the status and supervision of credit institutions; 2° investment firms within the meaning of Article 44, first paragraph, and referred to in Title II, of Book II of the Act of 6 April 1995 on the status and supervision of investment firms, insofar as they have obtained authorization as an investment firm; 3° branches established in Belgium of investment firms subject to the law of States that are not members of the European Economic Area, referred to in Book II, Title IV of the Act of 6 April 1995 on the status and supervision of investment firms which have obtained authorization as an investment firm.

Art. 2. § 1. In application of Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012, the institutions referred to in Article 1 shall take into account paragraph 2 for the determination of the weighting of exposures to retail clients referred to in Article 154, paragraph 3 of said Regulation.

§ 2. For exposures secured by a security on a residential real estate property located in Belgium, the risk weighting calculated in accordance with the aforementioned Article 154, paragraph 3, is increased by the following amount: 0.05.

Art. 3. This regulation shall enter into force on the date of entry into force of the Royal Decree approving it. Brussels, 16 April 2014. The Governor, L. COENE

Approved to be annexed to Our Decree of 25 April 2014 approving the regulation of 16 April 2014 of the National Bank of Belgium on the own funds of credit institutions and investment firms.

PHILIPPE By the King: Minister of Finance, K. GEENS