Royal Decree of 30 October 2025 approving the National Bank of Belgium Regulation of 1 October 2025 on the countercyclical tier 1 core capital conservation buffer rate and the systemic risk buffer for residential real estate exposures

FEDERAL PUBLIC SERVICE FINANCES [C − 2025/008459] 30 OCTOBER 2025. — Royal Decree approving the regulation of the National Bank of Belgium of 1 October 2025 on determining the rate of the countercyclical tier 1 core capital conservation buffer and on imposing a tier 1 core capital buffer for the systemic risk associated with exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium.

PHILIP, King of the Belgians, To all present and to come, Greetings.

Having regard to the Act of 22 February 1998 establishing the organic statute of the National Bank of Belgium, Articles 12bis, § 2 and 36/34, § 2;

Having regard to the Act of 25 April 2014 on the status and supervision of credit institutions, Article 96, § 1, 2° and 4° and § 2, Article 98, first paragraph, a) and Article 5, §§ 1, 2 and 4 and Articles 16 and 16/1, b) i) and f) of Annex IV;

Having regard to the Act of 20 July 2022 on the status and supervision of stock exchange companies, Article 108, which declares Article 96, § 1, 2° and § 2, Article 98, first paragraph, a) and Article 5, §§ 1, 2 and 4 of Annex IV to the aforementioned Act of 25 April 2014 applicable to large stock exchange companies as defined in Article 3, 5° of the aforementioned Act of 20 July 2022;

Having regard to the opinion of the Financial Inspection, given on 9 October 2025;

Having regard to the agreement of the Minister of the Budget, given on 23 October 2025;

On the proposal of the Minister of Finance,

We have decided and decide:

Article 1. The regulation of the National Bank of Belgium of 1 October 2025 on determining the rate of the countercyclical tier 1 core capital conservation buffer and on imposing a tier 1 core capital buffer for the systemic risk associated with exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium, attached to this Decree, is approved.

Art. 2. This Decree enters into force on 1 January 2026.

Art. 3. The Minister responsible for Finance is charged with the execution of this Decree.

Given in Brussels, 30 October 2025.

PHILIP By the King: The Minister of Finance, J. JAMBON

Annex to the Royal Decree of 30 October 2025 approving the regulation of the National Bank of Belgium of 1 October 2025 on determining the rate of the countercyclical tier 1 core capital conservation buffer and on imposing a tier 1 core capital buffer for the systemic risk associated with exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium.

The National Bank of Belgium,

Having regard to the Act of 22 February 1998 establishing the organic statute of the National Bank of Belgium, Articles 12bis, § 2 and 36/34, § 2;

Having regard to the Act of 25 April 2014 on the status and supervision of credit institutions, Articles 96, § 1, 2° and 4° and § 2, Article 98, first paragraph, a) and Article 5, §§ 1, 2 and 4 and Articles 16 and 16/1, b), i) and f) of Annex IV to the same Act;

Having regard to the Act of 20 July 2022 on the status and supervision of stock exchange companies, Article 108, which declares Article 96, § 1, 2° and § 2, Article 98, first paragraph, a) and Article 5, §§ 1, 2 and 4 of Annex IV to the aforementioned Act of 25 April 2014 applicable to large stock exchange companies as defined in Article 3, 5° of the aforementioned Act of 20 July 2022;

Whereas Article 5, § 1 of Annex IV to the Act of 25 April 2014, which transposes Article 136 of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on the access to the activity of credit institutions and the prudential supervision of credit institutions (hereinafter "Directive 2013/36/EU"), provides that the National Bank of Belgium sets the countercyclical buffer rate for relevant credit risk exposures to counterparties established on Belgian territory;

Whereas the Bank sets or, if necessary, adjusts this rate based on the quarterly assessment of several reference indicators reflecting the intensity of cyclical systemic risk and risks due to excessive credit growth in Belgium, taking into account the specific characteristics of the Belgian economy;

Whereas, based on the financial stability risk analyses in Belgium, it is justified to increase the overall resilience of the banking sector to ensure it can cope with potential significant shocks, while simultaneously easing requirements regarding exposures secured by non-commercial immovable property located in Belgium;

Whereas, in accordance with Article 5, § 4 of Annex IV to the aforementioned Act of 25 April 2014, the Bank sets the date from which the concerned institutions must apply the thus determined rate;

Whereas the uncertain economic environment faced by the financial sector constitutes an exceptional circumstance justifying a short-term increase in the countercyclical buffer rate;

Whereas setting the countercyclical buffer rate at 1.25% from 1 July 2026, i.e., 6 months after the date the increase is announced, meets the aforementioned objective;

Furthermore, whereas Articles 16 and 16/1 of Annex IV to the Act of 25 April 2014, which transpose Article 133 of Directive 2013/36/EU, allow the National Bank of Belgium to require credit institutions or one or more sub-groups of credit institutions to apply a buffer composed of tier 1 core capital on an individual, sub-consolidated, and consolidated basis, regarding all exposures or a segment of exposures, to anticipate or mitigate the impact of systemic or macroprudential risks not covered by Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and by national provisions transposing Articles 130 and 131 of the aforementioned directive, understood as structural risks of disruption to the financial system that could have serious consequences for the stability of the financial system and the real economy in Belgium;

Whereas the vulnerabilities observed in Belgian mortgage loan portfolios have been reduced to such an extent that a limited extension of the buffer for the systemic risk associated with exposures secured by non-commercial immovable property located in Belgium is sufficient until the overall resilience of the banking sector is strengthened through the higher countercyclical capital buffer;

Whereas imposing a tier 1 core capital buffer calculated by multiplying the risk-weighted amount of exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium, by 6%, allows covering the aforementioned systemic risk.

Decides:

Article 1 – Definitions § 1. For the purposes of this regulation, the following definitions apply:

1° "the Bank": the National Bank of Belgium;

2° "the Act of 25 April 2014": the Act of 25 April 2014 on the status and supervision of credit institutions;

3° "the Act of 20 July 2022": the Act of 20 July 2022 on the status and supervision of stock exchange companies; and

4° "Regulation 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.

Article 2 – Rate of the countercyclical tier 1 core capital conservation buffer

For credit institutions under Belgian law as referred to in Book II and in Book III, Title II of the Act of 25 April 2014, as well as for stock exchange companies under Belgian law as referred to in Book II of the Act of 20 July 2022 which are considered large stock exchange companies within the meaning of Article 3, 5° of the Act of 20 July 2022, the Bank, respectively in accordance with Article 5, § 2 of Annex IV to the Act of 25 April 2014 and Article 108 of the Act of 20 July 2022, which declares the aforementioned Article 5, § 2 applicable to large stock exchange companies, sets the rate of the countercyclical tier 1 core capital conservation buffer for relevant credit risk exposures to counterparties established on Belgian territory at 1.25%, to be applied from 1 July 2026.

The conservation buffer rate applies until one of the Bank's quarterly assessments leads to the determination of a new rate.

Relevant credit risk exposures are determined on an individual and consolidated basis, in accordance with the technical standards referred to in Article 3, second paragraph of Annex IV to the Act of 25 April 2014.

Article 3 – Tier 1 core capital buffer for systemic and macroprudential risks

§ 1. Credit institutions as referred to in Book II of the Act of 25 April 2014 using the internal ratings-based approach referred to in Part III (Capital Requirements), Title II, Chapter 3 of Regulation 575/2013, shall apply a tier 1 core capital buffer for systemic and macroprudential risks on an individual, sub-consolidated, and consolidated basis, the amount of which is calculated by multiplying the risk-weighted amount of exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium, by 6%.

The risk-weighted amount of the exposures referred to in the first paragraph is calculated in accordance with Article 154 of Regulation 575/2013.

§ 2. The measure referred to in paragraph 1 ceases to apply on 1 July 2026.

Article 4 – Repeal Provision - Entry into Force

§ 1. This regulation serves to repeal and replace the regulation of the National Bank of Belgium of 4 July 2023 on determining the rate of the countercyclical tier 1 core capital conservation buffer and on imposing a tier 1 core capital buffer for the systemic risk associated with exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium, approved by Royal Decree of 5 September 2023.

§ 2. This regulation enters into force on 1 January 2026.

Brussels, 1 October 2025.

The Governor, P. Wunsch

Seen to be attached to our Decree of 30 October 2025 approving the regulation of the National Bank of Belgium of 1 October 2025 on determining the rate of the countercyclical tier 1 core capital conservation buffer and on imposing a tier 1 core capital buffer for the systemic risk associated with exposures to individuals and small parties concerning natural persons, which are secured by non-commercial immovable property located in Belgium.

PHILIP By the King: The Minister of Finance, J. JAMBON