Macroprudential measures – Belgium (2018)

The Belgian macroprudential authority decided to extend the scope of a measure activating Article Article 458(2)(d)(vi) of Regulation (EU) No 575/2013 with effect from April 2018. This measure is composed of two components:

• a flat risk-weight add-on of 5 percentage points and
• a proportionate risk-weight add-on consisting of 33 per cent of the exposure-weighted average of the risk-weights applied to the portfolio of retail exposures secured by residential immovable property located in Belgium.

The Czech National Bank does not reciprocate this measure, as the exposure of domestic banks to mortgage loans for purchase of residential property located in Belgium is virtually zero. However, the Czech National Bank will continuously assess the volume of mortgage loans for purchase of residential property located in Belgium granted by domestic banks and stands ready to amend its decision if necessary.

Prague, 5 March 2019