Measures recommended for reciprocity to Recommendation ESRB/2015/02 between 2019 – 2024

In order to ensure a level playing field framework and to avoid regulatory arbitrage in the single market, the European Systemic Risk Board (ESRB) recommends that national macroprudential authorities recognize the macroprudential measures adopted by other Member States on the basis of ESRB Recommendation /2015 /2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures. According to the principle of reciprocity through voluntary recognition provided by the European regulatory framework, NCMO may recognize the measures adopted by other Member States, which is equivalent to the application of those measures or similar measures by credit institutions in Romania that provide financial services in that Member State directly or through branches.

The table below summarizes the active measures recommended for reciprocity in Recommendation ESRB / 2015/02 with subsequent amendments, as well as the decision adopted by NCMO on the appropriateness of their recognition by voluntary reciprocity.

Country Measure Materiality threshold Timeframe for validity The decision of the NCMO[1]
Portugal A 4 per cent sectoral systemic risk buffer rate on all IRB retail exposures to natural persons secured by residential immovable property for which the collateral is located in Portugal. EUR 1 billion, at the level of each credit institution Starting 01.10.2024 During the meeting of June 18, 2024, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Portugal, given that the eligible exposures of the local banking sector to this country are immaterial.
Belgium A 6 per cent systemic risk buffer rate on all IRB retail exposures to natural persons secured by residential immovable property for which the collateral is located in Belgium. EUR 2 billion, at the level of each credit institution 01.04.2024

–

present

 

 During the meeting of December 14, 2023, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Belgium, given that the eligible exposures of the local banking sector to this country are immaterial.
Sweden (i) a credit institution-specific minimum level (floor) of 35 per cent for the exposure-weighted average of the risk weights applied to the portfolio of certain corporate exposures in Sweden secured by immovable commercial properties to credit institutions authorised in Sweden using the IRB approach for calculating regulatory capital requirements;

(ii) a credit institution-specific minimum level (floor) of 25 per cent for the exposure-weighted average of the risk weights applied to the portfolio of certain corporate exposures in Sweden secured by immovable residential properties to credit institutions authorised in Sweden using the IRB approach for calculating regulatory capital requirements.

 SEK 5 billion, at the level of each credit institution 30.09.2023

–

present

 During the meeting of October 19, 2023, the NCMO decided not to voluntarily reciprocate the macroprudential measures of Sweden, given that the eligible exposures of the local banking sector to this country are immaterial.
Norway (i) Implementation of a 4,5 per cent systemic risk buffer rate for all exposures located in Norway;

 

(ii) Implementation of a 20 per cent floor for (exposure-weighted) average risk weights for exposures to residential real estate located in Norway to credit institutions authorised in Norway using the internal ratings-based (IRB) approach for calculating regulatory capital requirements;

 

(iii) Implementation of a 35 per cent  floor for average risk weights for exposures to commercial real estate located in Norway to credit institutions authorised in Norway using the IRB approach for calculating regulatory capital requirements.

 (i)   NOK 5 billion

 

(ii)  NOK 32,3 billion

 

(iii) NOK 7,6 billion

 06.03.2023

–

 

present

 During the meeting of June 20, 2023, the NCMO decided not to voluntarily reciprocate the macroprudential measures of Norway, given that the eligible exposures of the local banking sector to this country are immaterial.
Germany Implementation of a 2 per cent systemic risk buffer rate for all exposures to natural and legal persons that are secured by residential real estate located in Germany. EUR 10 billion, at the level of each credit institution 01.04.2022

–

present

 During the meeting of October 20, 2022, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Germany, given that the eligible exposures of the local banking sector to this country are immaterial.
Belgium Introduction of a 9 per cent systemic risk buffer rate on all IRB retail exposures to natural persons secured by residential immovable property for which the collateral is located in Belgium. EUR 2 billion, at the level of each credit institution 01.05.2022

–

present

 During the meeting of June 28, 2022, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Belgium, given that the eligible exposures of the local banking sector to this country are immaterial.
Lithuania Implementation of a 2 per cent systemic risk buffer rate on all retail exposures to natural persons resident in the Republic of Lithuania, which are secured by residential property. EUR 50 million (materiality threshold set for the amount of exposures arising from loans granted to borrowers in Lithuania) 01.06.2022

–

present

 During the meeting of March 31, 2022, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Lithuania, given that the eligible exposures of the local banking sector to this country are immaterial.
The Netherlands Introduction of a minimum average risk weight applied by credit institutions using the internal ratings-based (IRB) approach in relation to their portfolios of exposures to natural persons secured by residential property located in the Netherlands. EUR 5 billion, at the level of each credit institution 01.01.2022

–

present

 During the meeting of March 31, 2022, the NCMO decided not to voluntarily reciprocate the macroprudential measure of the Netherlands, given that the eligible exposures of the local banking sector to this country are immaterial.
Luxembourg Legally binding loan-to-value (LTV) limits for new mortgage loans on residential real estate located in Luxembourg, with different LTV limits applicable to different categories of borrowers:

 

(i) LTV limit of 100 per cent for first-time buyers acquiring their primary residence;

 

(ii) LTV limit of 90 per cent for other buyers i.e. non first-time buyers acquiring their primary residence. This limit is implemented in a proportional way via a portfolio allowance. Specifically, lenders may issue 15 per cent of the portfolio of new mortgages granted to these borrowers with an LTV above 90 per cent but below the maximum LTV of 100 per cent;

 

(iii) LTV limit of 80 per cent for other mortgage loans (including the “buy-to-let” segment).

 • EUR 350 million (1 percent of the total Luxembourg real estate market)

OR

•EUR 35 million (institution-specific materiality threshold for total cross-border mortgage loans to Luxembourg)

 01.01.2021

–

present

 During the meeting of June 3, 2021, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Luxembourg, given that the eligible exposures of the local banking sector to this country are immaterial.
France A tightening of the large exposure limit, applicable to exposures to highly-indebted large non-financial corporations having their registered office in France to 5 per cent of Tier 1 capital. This measure is applied to global systemically important institutions (G-SIIs) and other systemically important institutions (O-SIIs) at the highest level of consolidation of their banking prudential perimeter. • EUR 2 billion for the total original exposures of domestically authorised G-SIIs and O-SIIs to the French non-financial corporations’ sector

OR

•EUR 300 million applicable to G-SIIs and O-SIIs, for exposures meeting certain conditions

OR

•A threshold of 5 per cent of the G-SII’s or O-SII’s Tier 1 capital at the highest level of consolidation, for exposures identified in the previous bullet

 05.12.2019

–

present

 During the meeting of June 6, 2019, the NCMO decided not to voluntarily reciprocate the macroprudential measure of France, given that the eligible exposures of the local banking sector to this country are immaterial.
Sweden Implementation of a 25 per cent floor for the exposure-weighted average of the risk weights applied to the portfolio of retail exposures to obligors residing in Sweden secured by immovable property, to all credit institutions, using the IRB approach. SEK 5 billion, at the level of each credit institution 15.01.2019

–

present

 During the meeting of June 6, 2019, the NCMO decided not to voluntarily reciprocate the macroprudential measure of Sweden, given that the eligible exposures of the local banking sector to this country are immaterial.

Source: ESRB

[1] The relevant exposures to the measures in question will be monitored periodically, and the NBR will propose actions to be taken if they become significant.