6 March 2018
On 8 January, the European Systemic Risk Board (ESRB) adopted a Recommendation for the EU-wide reciprocation of Finland’s 15% risk-weight floor on residential mortgage loans in Finland for banks using the internal ratings-based approach. This Recommendation was published in the Official Journal of the European Union on 3 February 2018.
Recommendation ESRB/2018/1 seeks to ensure that Finland’s 15% risk-weight floor on mortgage loan exposures applies not only to such exposures of banks authorised in Finland, but also to other EU banks’ exposures to Finland’s mortgage market through branches in that country or EU banks’ direct cross-border exposures to Finland’s mortgage market. It thereby enhances the effectiveness and consistency of macroprudential policy in the EU and contributes to a level playing field in the Single Market.
Find out more here.
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