Macroprudential measures – Netherlands
Minimum average risk weight applied in accordance with Article 458(2)(d)(vi) of Regulation (EU) No 575/2013 to credit institutions authorised in the Netherlands, using the IRB approach for calculating regulatory capital requirements in relation to their portfolios of exposures to natural persons secured by residential property located in the Netherlands. For each individual exposure item that falls within the scope of the measure, a 12 % risk weight is assigned to the portion of the loan not exceeding 55 % of the market value of the property that serves to secure the loan, and a 45 % risk weight is assigned to the remaining portion of the loan. The minimum average risk weight of the portfolio is the exposure-weighted average of the risk weights of the individual loans.
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 the Netherlands is virtually zero. However, the Czech National Bank will continuously assess the volume of mortgage loans for purchase of residential property located in the Netherlands granted by domestic banks and stands ready to amend its decision if necessary.
Prague, 16 June 2022