Regulatory Alerts2020-02-14
Added · Updated
Royal Decree of 29 January 2020 approving the National Bank of Belgium Regulation of 2 December 2019 on additional own funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium
Credit institutions covered by the Law of 25 April 2014 must increase the risk weight of retail exposures secured by residential real estate in Belgium by adding 5% of the exposure amount and 33% of the risk-weighted amount of all retail exposures. This macroprudential measure applies from 1 May 2020 until 30 April 2021, subject to non-rejection by the Council of the European Union. The regulation addresses persistent vulnerabilities in the Belgian residential real estate sector, including household debt growth and price dynamics.
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