Recommendation of the European Systemic Risk Board amending on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2023/9)

New Recommendation of the European Systemic Risk Board (ESRB) „on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2023/9)“ was published in the Official Journal of the EU. The recommendation modifies Recommendation (ESRB/2015/2) which sets out „proposals“ for national competent authorities (NCAs) as to the implementation of policy measures so as to ensure that there’s a level playing field for financial institutions across European borders in terms of capital requirements, capital buffers, or related issues (i.e. exposures) when individual NCA’s implement specific (additional) requirements upon national institutions.
In this specific new recommendation, the ESRB updates the 2015 recommendation to include a revised sectoral systemic risk buffer (sSyRB) of the Belgian banking regulator, the Nationale Bank van België/Banque Nationale de Belgique (NBB/BNB), under Article 134(5) of the Capital Requirements Directive (Directive 2013/36/EU) from April 1, 2024. Specifically, the existing sSyRB of 9% will be limited to March 31, 2024 and beginning April 1, 2024, a new systemic risk buffer of 6% will apply.
The European Systemic Risk Board finds this measures to be worth to be considered on a voluntary reciprocity basis and thus modifies its 2015 recommendation accordingly – which includes modifications to Section 1, sub-recommendation C(1) and the Annex of the 2015 recommendation.
Also, the ESRB has removed the reciprocation recommendations as to measures under Article 458 of the Capital Requirements Regulation (CRR) (assignment of risk weights) of the French regulator, as the measure has expired and no further extension of the measures was notified by the French regulator.