Royal Decree of 4 May 2018 approving the Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium

BELGIAN OFFICIAL GAZETTE — 14.05.2018 — MONITEUR BELGE 39551

Art. 6. This decree shall enter into force on the day on which it is published in the Belgian Official Gazette. Art. 7. The Minister responsible for the National Lottery is charged with the implementation of this decree. Given at Brussels, 27 April 2018.

FILIP By the King: The Minister of Budget, S. WILMES

Art. 6. This decree shall enter into force on the day of its publication in the Moniteur belge. Art. 7. The Minister who has the National Lottery within his attributions is charged with the implementation of this decree. Given at Brussels, 27 April 2018.

PHILIPPE By the King: The Minister of Budget, S. WILMES

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FEDERAL PUBLIC SERVICE FINANCES [C — 2018/12061]

4 MAY 2018. — Royal Decree approving the Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium

FILIP, King of the Belgians, To all present and to come, Greetings. Having regard to the Law of 22 February 1998 establishing 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 stock exchange companies, Article 97; Having regard to the opinion of the Financial Inspection, given on 27 March 2018; Considering that this decree is exempt from a regulatory impact analysis by virtue of Article 8 of the Law of 15 December 2013 on various provisions regarding administrative simplification, as it concerns self-regulatory provisions; On the proposal of the Minister of Finance and with the advice of the Ministers deliberating in Council,

Have decided and do decide:

Article 1. The Regulation of 27 February 2018 of the National Bank of Belgium 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. This decree shall enter into force on 30 April 2018.

Art. 3. The Minister responsible for Finance is charged with the implementation of this decree. Given at Brussels, 4 May 2018.

FILIP By the King: The Minister of Finance, J. VAN OVERTVELDT

FEDERAL PUBLIC SERVICE FINANCES [C — 2018/12061]

4 MAY 2018. — Royal Decree approving the Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by a security interest on residential real estate located in Belgium

PHILIPPE, King of the Belgians, To all, present and to come, Greetings. Having regard to the Law of 22 February 1998 establishing 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 stock exchange companies, Article 97; Having regard to the opinion of the Financial Inspection, given on 27 March 2018; Considering that this decree is exempt from a regulatory impact analysis, as it concerns self-regulatory provisions, by virtue of Article 8 of the Law of 15 December 2013 on various provisions regarding administrative simplification; On the proposal of the Minister of Finance and with the advice of the Ministers who have deliberated in Council,

We have decided and do decide:

Article 1. The Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by a security interest on residential real estate located in Belgium, annexed to this decree, is approved.

Art. 2. This decree shall enter into force on 30 April 2018.

Art. 3. The Minister who has Finance within his attributions is charged with the implementation of this decree. Given at Brussels, 4 May 2018.

PHILIPPE By the King: The Minister of Finance, J. VAN OVERTVELDT

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Annex to the Royal Decree of 4 May 2018 approving the Regulation of 27 February 2018 of the National Bank of Belgium 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 22 February 1998 establishing 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 stock exchange companies, Article 97; 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; Having regard to the absence of a proposal for a decision by the European Commission pursuant to Article 458, paragraph 4, of the aforementioned Regulation (EU) No 575/2013;

Annex to the Royal Decree of 4 May 2018 approving the Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by a security interest on residential real estate located in Belgium The National Bank of Belgium, Having regard to the Law of 22 February 1998 establishing 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 stock exchange companies, Article 97; Having regard to Article 458 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 concerning prudential requirements applicable to credit institutions and investment firms and amending Regulation (EU) No 648/2012; Having regard to the absence of a proposal for a decision by the European Commission pursuant to Article 458, paragraph 4, of the aforementioned Regulation (EU) No 575/2013;

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39552 BELGIAN OFFICIAL GAZETTE — 14.05.2018 — MONITEUR BELGE

Considering that 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; Considering that the additional risk weight of 5 percent for exposures secured by residential real estate in Belgium, as previously determined in the Regulation of 24 March 2016 of the National Bank of Belgium on additional own funds requirements for specific systemic risk, remains justified, given the volume of these exposures and the risk associated with them; Considering that an additional, targeted measure is required for mortgage loans, given the increase in the vulnerabilities previously observed, namely 1° the strong growth of real estate-backed loans and the resulting increase in the debt burden of Belgian households; 2° the still significant share in loans of subsegments considered riskier; and 3° the dynamics in the evolution of house prices in Belgium.

Decide:

Article 1. Scope of Application § 1. For the purposes of this decree, the following terms are understood as: 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 stock exchange 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.

Art. 2. Macroprudential Measure For real estate-backed risk positions on retail clients, the risk weight for risk positions 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 percent of the real estate-backed risk positions on retail clients; and 2° 33 percent of the total risk-weighted position on retail clients calculated in accordance with Article 154 of Regulation (EU) No 575/2013.

Art. 3. Entry into Force This regulation shall enter into force on the day of entry into force of the Royal Decree approving it, and shall expire on 30 April 2020.

Brussels, 4 May 2018.

The Governor, J. SMETS

Seen to be attached to our decree of 4 May 2018 approving the Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by residential real estate in Belgium

FILIP By the King: The Minister of Finance, J. VAN OVERTVELDT

Considering that Article 458 of Regulation (EU) No 575/2013 allows competent authorities to impose stricter measures to take into account a variation in the intensity of macroprudential risk and more particularly to address additional risks in the residential real estate sector; Considering that the additional risk weighting of 5 percent applicable to exposures secured by a security interest on residential real estate located in Belgium, as previously provided for by the Regulation of 24 March 2016 of the National Bank of Belgium on additional own funds requirements for specific systemic risks, remains justified in view of the extent of these exposures and the risk associated therewith; Considering that this measure requires a targeted supplement for mortgage loans in view of the intensification of previously observed vulnerabilities, namely 1° the significant growth of real estate-backed loans and the resulting increase in the indebtedness of Belgian households; 2° the still significant share among these loans of sub-segments considered to be riskier; and 3° the dynamics observed in the evolution of residential real estate prices in Belgium;

Decides:

Article 1. Scope of Application § 1. For the purposes of this decree, the following terms are understood as: 1° "Regulation (EU) No 575/2013": Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 concerning prudential requirements applicable to 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 stock exchange 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.

Art. 2. Macroprudential Measure With regard to exposures to retail clients secured by real estate security, 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 percent of the amount of exposures to retail clients secured by real estate security; and 2° 33 percent of the risk-weighted amount of all exposures to retail clients, calculated in accordance with Article 154 of Regulation (EU) No 575/2013.

Art. 3. Entry into Force This regulation shall enter into force on the day of entry into force of the Royal Decree approving it and shall cease to have effect on 30 April 2020.

Brussels, 4 May 2018.

The Governor, J. SMETS

Seen to be annexed to our decree of 4 May 2018 approving the Regulation of 27 February 2018 of the National Bank of Belgium on additional own funds requirements for macroprudential risk related to exposures secured by a security interest on residential real estate located in Belgium

PHILIPPE By the King: The Minister of Finance, J. VAN OVERTVELDT