Consultation on amendments to the Regulation on specific provisions CRD and CRR in connection with the extension of a minimum floor for the risk weighting of loans.
To private individuals covered by mortgages on real estate located in the Netherlands.
NLD DNB's adopted Mortgage Loan Risk Weighting Regulations came into effect on Jan. 1, 2022 and their extension was published on Oct. 2022 and applied on Dec. 1, 2022.
The scheme determined a minimum floor for the risk weighting of the mortgage loan portfolios of banks that use internal models and is now in force until Dec. 1, 2024.
NLD DNB intends to to extend the scheme for two years as of Dec. 1, 2024 so that it will be in force until Dec. 1, 2026 due to the high-level stabilizing risks in the market.
It will not be necessary to consider the future change in art 229(1)(d) of the CRR when calculating the minimum floor, which sets an upper limit on the collateral's revaluation.
Effectiveness
Comments on the amendments can be submitted via email until Jun. 25, 2024.
Oct. 2024 Scheme Extended
On Oct. 17, 2024, NLD DNB extended mortgage risk weighting scheme by 2 years.
On same day issued feedback statement to the consultation on extending the scheme.
Changes made to explanatory memorandum in response to consultation responses.
Mortgage risk weighting scheme temporarily extended until Nov. 30, 2026; decision made due to systemic risk in housing market remaining at a persistently high level.
Oct. 2024 Official Gazette
On Oct. 24, 2024, NLD GVT issued in OG Regulation of NLD DNB of Oct. 16, 2024 amending the Regulation on specific provisions CRD and CRR in connection with the extension of a minimum floor for the risk weighting of loans to private individuals secured by mortgages on real estate in the Netherlands (to be cited as Regulation on the extension of risk weighting of mortgage loans 2024).
Amended first para to read: A bank established in the Netherlands which is permitted under Article 143 of the CRR to calculate risk-weighted exposure amounts for exposures to natural persons, as referred to in Article 147(5)(a)(iii) of the CRR, using the Internal Ratings Based Approach shall, in respect of the total exposures to natural persons secured by residential real estate in the Netherlands, at least meet the required average risk weighting as referred to in paragraph 2 of this Article.
Also added a new fourth para in order to extend expiry date to Dec. 1, 2026
In force Nov. 30, 2024, except for Article I, Section A, which is in force Jan. 1, 2025.
Regulators
NLD DNB
Entity Types
Bank; MG Orig; Servicer
Reference
OG 34374, 10/24/2024; FS, PR 10/17/2024; CP, PR, 5/14/2024; CRD/CRR Dir 2013/36, Reg 575/2013
