Mutual recognition of macroprudential measures (reciprocity)

Foreign institutions operate alongside domestic ones on the financial markets of individual EU countries. They do so primarily in the form of branches or through direct cross-border provision of services. However, the macroprudential measures adopted by a Member State may not be binding on those foreign institutions. This can undermine the effectiveness of such measures and give rise to an unlevel playing field. Consequently, the concept of reciprocity has been incorporated into the rules governing macroprudential policy in the EU in order to make that policy as effective and consistent as possible. For some measures with obvious cross-border impacts, CRD IV sets forth mandatory reciprocity, i.e. automatic application of the relevant measures in other Member States. These measures relate to banks’ exposures and include, for example, the countercyclical capital buffer. Measures for which reciprocity is not stipulated in CRD IV can be implemented by other Member States in justified cases on a voluntary basis.

The framework for voluntary reciprocity is based on the principle whereby the national macroprudential authority activating the measure makes a request through the European Systemic Risk Board (ESRB) for the measure to be applied by the other EU Member States. If the ESRB concludes that the request is justified, it issues a recommendation to reciprocate. The Member States either comply with the ESRB’s recommendation or explain why they are rejecting it.

The macroprudential measures implemented in EU countries in respect of which the Czech Republic has been recommended to reciprocate will be published below together with the CNB’s opinion. A list of all measures introduced by macroprudential authorities in the EU, along with their reciprocity status in the Member States, is provided on the ESRB website.

Non-active macroprudential measures adopted in EU countries with a request for reciprocation in the Czech Republic

Country	Instrument	Date of notification to the ESRB	The CNB’s action	Justification	Valid until
Belgium	Activation of Article 133 of the CRD	30 March 2022	Not reciprocated	Link to the CNB’s statement	1 April 2024
Norway	Systemic risk buffer and activation of Article 458 of the CRR	5 November 2020	Not reciprocated	Link to the CNB’s statement	30 December 2022
Belgium	Activation of Article 458 of the CRR	14 March 2018	Not reciprocated	Link to the CNB’s statement	30 April 2022
Belgium	Activation of Article 458 of the CRR	21 January 2016	Not reciprocated	Link to the CNB’s statement	16 July 2018
Estonia	Systemic risk buffer	26 April 2016	Not reciprocated	Link to the CNB’s statement	2 June 2020
Finland	Activation of Article 458 of the CRR	27 June 2017	Not reciprocated	Link to the CNB’s statement	31 December 2020