Reciprocation of measures

Published: 7/6/2024 Modified: 25/7/2024
Reciprocation of macroprudential policy measures adopted by relevant authorities of other Member States of the European Union should ensure that all exposure-based macroprudential policy measures activated in one Member State are reciprocated in others.

This increases the effectiveness and consistency of macroprudential policy in EU Member States and contributes to a level playing field in the Single Market. In December 2015, the ESRB adopted a Recommendation on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2015/2), which aims to harmonise the procedures of voluntary reciprocity for macroprudential policy measures and reduce potential negative cross-border effects of macroprudential measures. The Croatian National Bank transposed the provisions of the Recommendation ESRB/2015/2 into the Croatian legislative framework by adopting the Decision on the reciprocity of macroprudential policy measures adopted by the relevant authorities of other European Union Member States and the assessment of cross-border effects of macroprudential policy measures.

For each macroprudential measure recommended for reciprocation, the CNB reviews the amount of these exposures of domestic credit institutions regarding to the recommended materiality threshold and on this basis decides on a potential reciprocation of the measure. Such approach is also applied by the majority of other EU Member States, which is in accordance with the ESRB recommendation. If due to the low exposure amount a national measure of another Member State is not reciprocated, it is necessary, once a year, to review the change in the exposure or the exposure sub-group to that country and, if they exceed the recommended materiality threshold, the measure should be reciprocated subsequently. Currently, the CNB does not apply any of the recommended national reciprocity measures, but it reviews the materiality of those exposures every year in order to initiate the reciprocation if necessary.

 


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