(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)

Decision of the European Economic Area (EEA) Joint Committee No 79/2019 (6) incorporated Directive 2013/36/EU and Regulation (EU) No 575/2013 into the Agreement on the European Economic Area (EEA Agreement) with effect from 1 January 2020. Directive (EU) 2021/338 of the European Parliament and of the Council (7) and Regulation (EU) 2021/558 of the European Parliament and of the Council (8), which introduced significant amendments to Directive 2013/36/EU and Regulation (EU) No 575/2013, were incorporated into the EEA Agreement by Decision of the EEA Joint Committee No 213/2022 (9) and Decision of the EEA Joint Committee No 145/2024 (10), respectively. Directive (EU) 2021/338 and Regulation (EU) 2021/558 are now applicable in Norway.

(4)

On 29 August 2024, Finansdepartementet (the Norwegian Ministry of Finance), acting as the designated authority for the purpose of Article 133(2) of Directive 2013/36/EU, notified the European Systemic Risk Board (ESRB) of its intention to reset the systemic risk buffer (SyRB) rate previously imposed, at the same rate of 4,5 %, on all exposures located in Norway. The measure has applied since 31 December 2020, and it is currently recommended for reciprocation under Recommendation ESRB/2023/1 of the European Systemic Risk Board (11). On the same date, Finansdepartementet notified the ESRB of its intention to require certain institutions to maintain an ‘other systemically important institutions’ (O-SII) buffer of Common Equity Tier 1 capital, in accordance with Article 131 of Directive 2013/36/EU.

(5)

Subsequently, on 26 September 2024, Finansdepartementet submitted a request for the ESRB to recommend the reciprocation of the SyRB rate on a consolidated, sub-consolidated and individual basis, pursuant to Article 134(5) of Directive 2013/36/EU. The macroprudential policy measure itself remains unchanged.

(6)

On 7 October 2024, the ESRB adopted Opinion ESRB/2024/6 of the European Systemic Risk Board (12), where it stated that it considers the cumulative SyRB and O-SII buffer rate as appropriate and effective to address the identified risks for each of the credit institutions which fall within the scope of these two measures.

(7)

Recommendation ESRB/2015/2, as amended by Recommendation ESRB/2017/4 of the European Systemic Risk Board (13), recommends that the relevant authority activating a macroprudential policy measure should, when submitting a request for reciprocation to the ESRB, propose a maximum 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. The materiality threshold for reciprocating the SyRB is set at a risk-weighted exposure amount of NOK 5 billion, which corresponds to around 0,16 % of the total risk-weighted exposure amount of credit institutions reporting in Norway (14).

(8)

The reciprocation of macroprudential capital requirements activated by authorities of other Member States, on a consolidated, sub-consolidated and individual basis, irrespective of whether the exposures concerned are held through subsidiaries or branches, or result from direct cross-border lending, limits leakages and regulatory arbitrage, tackles systemic risks and thus promotes the overall effectiveness of macroprudential policy by ensuring that increased risks are addressed not only in the Member State that has introduced the SyRB but also in other Member States where banking groups are exposed to those increased risks. Recognition should therefore also aim to ensure that banking groups exposed to those systemic risks are sufficiently resilient. Therefore, macroprudential capital requirements stemming from a decision to recognise other Member States’ macroprudential measures should in general be applied on a consolidated, sub-consolidated and individual basis.

(9)

To recognise the Norwegian SyRB rate as requested by Finansdepartementet, the relevant competent and/or designated authorities of another Member State may set a SyRB rate in accordance with Articles 133(4) and 134(1) of Directive 2013/36/EU.

(10)

This amendment to Recommendation ESRB/2015/2 does not affect the continuity of recommending the reciprocation of the national macroprudential measures activated by the Norwegian authorities on 31 December 2022, as set out in Recommendation ESRB/2023/1. The current amendments to Recommendation ESRB/2015/2, except for the reciprocation of the SyRB on a consolidated, sub-consolidated and individual basis, are of an editorial nature. Therefore, the standard three-month transition period following the publication of this Recommendation in the Official Journal of the European Union is only applicable to measures, or amendments thereto, that national authorities will adopt to reciprocate the SyRB on a consolidated, sub-consolidated and individual basis.

(11)

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