Real Estate
Decisions
The Bank has taken various measures concerning the financial sector's exposures to the Belgian residential real estate market. These are aimed both at ensuring the resilience of the sector and at encouraging a more prudent credit policy.
On the one hand, the Bank introduced a macroprudential targeting exposures to the Belgian residential real estate market of credit institutions applying the internal ratings-based (IRB) approach. The measure has been introduced on 1 May 2022 and replaces an earlier measure introduced in 2018 that expired on 30 April 2022. This measure imposes additional capital requirements for targeted residential real estate exposures, in order to increase the banking sector’s resilience. These requirements will be recalibrated downwards from 1 April 2024.
Further information on this measure pdf
On the other hand, the Bank sets prudential expectations for banks and insurance companies that grant mortgage loans in Belgium. Banks and insurance companies are encouraged to be more cautious in granting mortgage loans with very high loan-to-value ratios, and to take greater account of households' debt and monthly repayment burden.
Further information on the prudential expectations
FAQ prudential expectations (French)