Published: 30.01.2023 Updated: 30.09.2024

To ensure that macroprudential measures are as effective as possible, it is important that in the country where they are activated they are also applied by branches or subsidiaries of credit institutions registered in other countries and by cross-border service providers if their activity affects the financial stability of this country.

Therefore, the reciprocity of macroprudential measures activated in the European Economic Area is encouraged within its Member States.

According to the CRD, some macroprudential measures are subject to mandatory reciprocity (countercyclical capital buffer up to the rate of 2.5% and measures established in Articles 124 and 164 of the CRR); however, Member States can ask other Member States to voluntarily reciprocate the macroprudential measures not subject to mandatory reciprocity, if necessary. To achieve this, the Member States ask the European Systemic Risk Board (ESRB) to issue a recommendation to other Member States to voluntarily reciprocate the activated measure. The ESRB reviews the request and issues a recommendation to other Member States to reciprocate the activated measure. The recommendation also includes the materiality threshold. Upon reaching this threshold, risk exposures subject to the measure are considered material, thus the measure should be reciprocated.

If the respective risk exposures are material or if there are other important reasons to reciprocate another Member State's measure, Latvijas Banka takes decision to apply the respective macroprudential requirement established by another country to the credit institutions authorised in Latvia.

Macroprudential measures adopted in other countries that are reciprocated and applicable to Latvia's credit institutions

Country Measure Status
Lithuania

The Netherlands and Lithuania - Recommendation of the European Systemic Risk Board of 16 February 2022 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2022/1) (europa.eu)
[1] 2% sectoral systemic risk buffer rate for all retail exposures to natural persons resident in Lithuania that are secured by residential property.

More detailed additional informationCredit institutions shall assess respective risk exposure amounts to natural persons resident in the Republic of Lithuania that are secured by residential property using data from COREP C 09.01a for SA exposures (deduction of row 0095 from row 0090 to obtain non-SMEs value; columns 0010, 0075 and 0090) and COREP C 09.02 for IRB exposures (row 0090; columns 0010, 0105 and 0125). In case credit institutions have both relevant SA and IRB exposures the sum of corresponding columns from both reports shall be assessed. All three column values shall be evaluated against the materiality threshold of 50 milj. euro and the relevant measure shall be applied only if the respective threshold is exceeded in case of at least one of these values. The 2 percent sectoral systemic risk buffer rate is then calculated based on the risk weighted exposure amount after supporting factors (COREP C 09.01a (deduction of row 0095 from row 0090, column 0090) and COREP C 09.02 (row 0090, column 0125)).


Kredītiestādēm ir nepieciešams novērtēt attiecīgos ar Lietuvas Republiku noslēgto riska darījumu apmērus pēc COREP C 09.01a (rindu 0090 un 0095 starpība, kolonnas 0010, 0075 un 0090) un COREP C 09.02 (rinda 0090, kolonnas 0010, 0105 un 0125) datiem (saskaitot atbilstošās kolonnas vērtības no abiem pārskatiem, ja iestādei ir gan SA, gan IRB riska darījumi), un novērtēt 50 milj. eiro pārsniegumu kaut vienā no šo kolonnu vērtībām. Sektorālā sistēmiskā riska rezerve 2 procentu apmērā ir rēķināma no riska darījumu riska svērtās vērtības pēc atbalsta koeficientiem apmēra (COREP C 09.01a (rindu 0090 un 0095 starpība, kolonna 0090) un COREP C 09.02 (rinda 0090, kolonna 0125)).

Active and reciprocated by Decision of 16 August 2022 

Applicable no later than 31 December 2022

Macroprudential measures adopted in other countries that are not reciprocated in Latvia

Country Measure Status
Denmark

[1] 7 % sectoral systemic risk buffer rate on all types of  exposures located in Denmark to non-financial corporations operating in real estate activities and in the development of building projects

Assessment of 23 September 2024

Portugal [2] 4 % 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 Assessment of 23 September 2024
Italy

[3] 1 % systemic risk buffer rate on all credit risk exposures and counterparty credit risk exposures located in Italy

Assessment of 23 September 2024
Belgium [4] 6% systemic risk buffer rate for all retail exposures secured by residential immovable property which is located in Belgium

Assessment of 10 June 2024

Germany [5] 2% systemic risk buffer rate for exposures to natural and legal persons secured by residential immovable property which is located in Germany

Assessment of 26 October 2022

Netherlands [6] Minimum average risk weight (the exposure-weighted average of the risk weights of the individual loans) applied in relation to portfolios of exposures to natural persons secured by residential property located in the Netherlands

Assessment of 26 October 2022

Norway [7] 4.5% systemic risk buffer rate for exposures to residents in Norway

Assessment of 12 June 2023

Norway [8] Average risk weight floors for exposures in Norway: 20% for residential real estate exposures and 35% for commercial real estate exposures Decision of 26 October 2021
Sweden [9] Floor of 25% for the exposure-weighted average of the risk weights applied to the portfolio of retail exposures secured by immovable property in Sweden Decision of 18 June 2019
Sweden [10] Floor for the exposure-weighted average of the risk weights applied to the portfolio of corporate exposures in Sweden: 35% if secured by mortgages on immovable commercial properties and 25% if secured by mortgages on immovable residential properties Assessment of 10 June 2024
Luxembourg [11] Loan-to-value (LTV) limits for new mortgage loans secured by residential real estate located in Luxembourg Decision of 26 October 2021