On 10 April 2017, the CBC decided to adopt via reciprocity, the macroprudential measure that was adopted by the National Bank of Belgium, which was recommended for reciprocation by the European Systemic Risk Board (ESRB).
The Belgian measure, constitutes a 5% risk-weight add-on, applied under Article 458(2)(d)(vi) of Regulation (EU) No 575/2013 (Capital Requirements Regulation - CRR) to the Belgian mortgage loan exposures of credit institutions. Specifically, the risk weighting, calculated in accordance with Article 154(3) of the CRR, for retail exposures secured by residential immovable property located in Belgium, is increased by 5%. The Belgian measure must be applied by those credit institutions that are established in Cyprus which:
The CBC’s decision enters into force from 24 June 2016.
The ESRB Recommendation ESRB/2016/3 recommending the reciprocity of the Belgian macroprudential measure, is available at ESRB/2016/3.
The measure taken by the National Bank of Belgium expired on 28 May 2017. As a result, the Board of Directors of the CBC decided on 12 February 2018 to terminate the measure that the CBC had taken on 10 April 2017, with retrospective effect from 29 May 2017.