(1)

In order to ensure effective and consistent national macroprudential policy measures, it is important to complement the recognition required under Union law with voluntary reciprocity.

(2)

The framework on voluntary reciprocity for macroprudential policy measures set out in Recommendation ESRB/2015/2 of the European Systemic Risk Board (5) aims to ensure that all exposure-based macroprudential policy measures activated in one Member State are reciprocated in other Member States.

(3)

On 7 June 2024, the Danish Ministry of Industry, Business and Financial Affairs, acting as the designated authority for the purpose of Article 133 of Directive 2013/36/EU, notified the ESRB of its intention to set a sectoral systemic risk buffer (sSyRB) rate, in accordance with Article 133(9) of that Directive. The notification entails an adjustment of a measure which was first notified to the ESRB by the Danish Ministry of Industry, Business and Financial Affairs on 10 October 2023 but has not yet been and will not be activated.

(4)

The adjusted macroprudential policy measure differs from the measure first notified in October 2023, as the part of each exposure that lies within a loan-to-value ratio range of 0 % to 15 % is excluded from the exposures to which the adjusted sSyRB rate applies. Like the macroprudential policy measure notified on 10 October 2023, the adjusted macroprudential policy measure will apply to all domestic credit institutions on an individual and a consolidated basis. It will apply to all types of exposures located in Denmark to non-financial corporations operating in real estate activities and in the development of building projects identified in accordance with the statistical classification of economic activities in the Union (NACE) set out in Regulation (EC) No 1893/2006 of the European Parliament and of the Council (6). Since the adjustment was made to the measure in order to align the total impact of the sSyRB rate with the impact anticipated by the original measure and the overall reasoning has not changed, the adjustment is considered to constitute only a minor deviation from the measure that was notified on 10 October 2023.

(5)

The sSyRB rate applies from 30 June 2024. The measure will be reviewed by the designated authority for the purpose of Article 133 of Directive 2013/36/EU at the latest two years after the initial application.

(6)

On 7 June 2024, the Danish Ministry of Industry, Business and Financial Affairs also submitted a request to the ESRB to recommend the reciprocation of the aforementioned adjusted macroprudential policy measure pursuant to Article 134(5) of Directive 2013/36/EU.

(7)

Following the notification on 10 October 2023 referred to above, the ESRB adopted Recommendation ESRB/2023/13 of the European Systemic Risk Board (7), which amended Recommendation ESRB/2015/2 with immediate effect. The macroprudential policy measure notified on 10 October 2023 was added to the list of macroprudential policy measures that are recommended to be reciprocated under Recommendation ESRB/2015/2. In the case of the macroprudential policy measure notified on 10 October 2023, reciprocation on an individual and on a consolidated basis was recommended, as requested by the Danish Ministry of Industry, Business and Financial Affairs.

(8)

Recommendation ESRB/2015/2 of the ESRB, as amended by Recommendation ESRB/2017/4 (8), recommends that the relevant authority activating a macroprudential policy measure should, when submitting a request for reciprocation to the ESRB, propose a materiality threshold below which an individual financial service provider’s exposure to the identified macroprudential risk in the jurisdiction where the macroprudential policy measure is applied by the activating authority can be considered non-material. The ESRB may recommend a different threshold if deemed necessary.

(9)

Following the Danish request received on 7 June 2024 for the reciprocation of the measure by other Member States and in order to: (i) ensure that the subsequent adjustment of the Danish macroprudential measure is included in such reciprocation and (ii) prevent the materialisation of negative cross-border effects in the form of leakages and regulatory arbitrage that could result from the implementation of the macroprudential policy measure that will become applicable in Denmark; the General Board of the ESRB has decided: (a) that the measure notified on 10 October 2023 should continue to be included in the list of macroprudential policy measures that it recommends to be reciprocated under Recommendation ESRB/2015/2; and (b) that the scope of the measure notified on 10 October 2023 should be adjusted to align it with the request for reciprocation received by the ESRB from the Danish Ministry of Industry, Business and Financial Affairs. The General Board of the ESRB has also decided to maintain its recommendation for a maximum institution-specific materiality threshold of EUR 200 million to steer the application of the de minimis principle by reciprocating Member States. The relevant authorities reciprocating the measure may exempt institutions from the systemic risk buffer requirement as long as their relevant exposures do not exceed EUR 200 million.

(10)

Therefore, Recommendation ESRB/2015/2 should be amended accordingly,