Royal Decree of 28 February 2021 approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium

BELGIAN MONITOR — 08.03.2021 — BELGIAN OFFICIAL GAZETTE 19659

FEDERAL PUBLIC SERVICE FINANCES [C — 2021/40870] 28 FEBRUARY 2021. — Royal Decree approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium (1)

PHILIPPE, King of the Belgians, To all, present and future, Greetings. Having regard to the Law of 22 February 1998 laying down the organic statute of the National Bank of Belgium, Article 12bis, § 2; Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions and securities companies, Article 97; Having regard to the opinion of the Financial Inspection, given on 11 January 2021; Having regard to the agreement of the Minister of the Budget, given on 13 January 2021; Having regard to Article 8 of the Law of 15 December 2013 on various provisions concerning administrative simplification, this Decree is exempt from regulatory impact analysis, as it concerns self-regulatory provisions; On the proposal of the Deputy Prime Minister and Minister of Finance and on the advice of the Ministers who have deliberated in Council,

We have decreed and decree: Article 1. The Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium, annexed to this Decree, is approved. Art. 2. The Minister responsible for Finance is charged with the execution of this Decree. Given in Brussels, 28 February 2021. PHILIPPE By the King: The Deputy Prime Minister and Minister of Finance, V. VAN PETEGHEM

Annex to the Royal Decree of 28 February 2021 approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium The National Bank of Belgium, Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions and securities companies, Article 97; Having regard to the Law of 22 February 1998 laying down the organic statute of the National Bank of Belgium, Article 12bis, § 2;

FEDERAL PUBLIC SERVICE FINANCES [C — 2021/40870] 28 FEBRUARY 2021. — Royal Decree approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium (1)

FILIP, King of the Belgians, To all who are now and hereafter shall be, Our Greeting. Having regard to the Law of 22 February 1998 laying down the organic statute of the National Bank of Belgium, Article 12bis, § 2; Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions and securities companies, Article 97; Having regard to the opinion of the Financial Inspection, given on 11 January 2021; Having regard to the agreement of the Minister of the Budget, given on 13 January 2021; Having regard to Article 8 of the Law of 15 December 2013 on various provisions concerning administrative simplification, this Decree is exempt from a regulatory impact analysis because it concerns self-regulatory provisions; On the proposal of the Deputy Prime Minister and Minister of Finance and on the advice of the Ministers meeting in Council,

We have decided and decide: Article 1. The Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium, attached to this Decree, is approved. Art. 2. The Minister responsible for Finance is charged with the execution of this Decree. Given in Brussels, 28 February 2021. FILIP By Royal Order: The Deputy Prime Minister and Minister of Finance, V. VAN PETEGHEM

Annex to the Royal Decree of 28 February 2021 approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium The National Bank of Belgium, Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions and securities companies, Article 97; Having regard to the Law of 22 February 1998 laying down the organic statute of the National Bank of Belgium, Article 12bis, § 2;

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19660 BELGIAN MONITOR — 08.03.2021 — BELGIAN OFFICIAL GAZETTE

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; Whereas Article 458 of Regulation (EU) No 575/2013 allows competent authorities to impose stricter measures to take into account a change in the intensity of macroprudential risk and more specifically to address additional risks in the residential real estate sector; Whereas the additional risk weight applicable to exposures secured by residential real estate in Belgium, as provided for by the Regulation of the National Bank of Belgium of 2 December 2019 on additional own-funds requirements for specific systemic risks, remains justified given the volume of these exposures and the persistence of observed vulnerabilities, in particular, 1° the significant growth in real estate-backed loans and the resulting increase in the indebtedness of Belgian households; 2° the still significant share in the aforementioned loans of sub-segments considered to be riskier; and 3° the dynamics observed in the evolution of residential real estate prices in Belgium,

Decides: Scope Article 1. § 1. For the purposes of this Decree, the following definitions apply: 1° Regulation (EU) No 575/2013: 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; 2° The Law of 25 April 2014: The Law of 25 April 2014 on the status and supervision of credit institutions and securities companies. § 2. The provisions of this Regulation apply to credit institutions referred to in Book II and Book III, Title II, of the Law of 25 April 2014.

Macroprudential measure Art. 2. Regarding retail exposures secured by real estate collateral, the risk-weighted amount of exposures calculated in accordance with Article 154 of Regulation (EU) No 575/2013 is increased by an amount consisting of the sum of the following elements: 1° 5 per cent of the amount of retail exposures secured by real estate collateral; and 2° 33 per cent of the risk-weighted amount of all retail exposures, calculated in accordance with Article 154 of Regulation (EU) No 575/2013.

Entry into force Art. 3. This Regulation enters into force on 1 May 2021, provided that the Council of the European Union has not rejected, in application of Article 458, § 4 of Regulation (EU) No 575/2013, the measure referred to in Article 2 of this Regulation, as notified by 30 January 2021 at the latest in application of Article 458, § 2 of Regulation (EU) No 575/2013. This Regulation ceases to have effect on 30 April 2022. Brussels, 28 February 2021. The Governor, For annexation to our Decree of 28 February 2021 approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium

PHILIPPE By the King: The Deputy Prime Minister and Minister of Finance, V. VAN PETEGHEM

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; Whereas Article 458 of Regulation (EU) No 575/2013 enables competent authorities to impose stricter measures in order to take into account a change in the intensity of macroprudential risk and more specifically to address additional risks in the residential real estate sector; Whereas the additional risk weight for exposures secured by residential real estate in Belgium, as determined in the Regulation of the National Bank of Belgium of 2 December 2019 on additional own-funds requirements for specific systemic risk, remains justified, given the volume of these exposures and the ongoing vulnerabilities, in particular 1° the strong growth in real estate-backed loans and the resulting increase in the debt burden of Belgian households; 2° the still significant share in the aforementioned loans of sub-segments considered riskier; and 3° the dynamics in the development of house prices in Belgium;

Decides: Scope of application Article 1. § 1. For the application of this Decree, the following is understood: 1° "Regulation (EU) No 575/2013": 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; 2° "the Law of 25 April 2014": the Law of 25 April 2014 on the status and supervision of credit institutions and securities companies. § 2. The provisions of this Regulation apply to the credit institutions referred to in Book II and Book III, Title II of the Law of 25 April 2014.

Macroprudential measure Art. 2. For exposures secured by real estate to retail clients, the risk weight for exposures calculated in accordance with Article 154 of Regulation (EU) No 575/2013 is increased by an amount equal to the sum of the following elements: 1° 5 per cent of the real estate-backed exposures to individuals; and 2° 33 per cent of the risk weight for all exposures to individuals calculated in accordance with Article 154 of Regulation (EU) No 575/2013.

Entry into force Art. 3. This Regulation enters into force on 1 May 2021, on condition that the Council of the European Union has not rejected the measure referred to in Article 2 of this Regulation, which must be notified by 30 January 2021 at the latest in accordance with Article 458, paragraph 2, of Regulation (EU) No 575/2013, in accordance with Article 458, paragraph 4, of this Regulation. This Regulation ceases to be in force on 30 April 2022. Brussels, 28 February 2021. The Governor, Seen to be attached to our Decree of 28 February 2021 approving the Regulation of the National Bank of Belgium of 22 December 2020 on additional own-funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium

FILIP By Royal Order: The Deputy Prime Minister and Minister of Finance, V. VAN PETEGHEM

19660 BELGIAN MONITOR — 08.03.2021 — BELGIAN OFFICIAL GAZETTE